Leidos (LDOS) 10-Q 3 Aug 21 2021 Q2 Quarterly report Financial data

Cover Page

Cover Page - shares	6 Months Ended
	Jul. 02, 2021	Jul. 26, 2021
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jul. 2, 2021
Document Transition Report	false
Entity File Number	001-33072
Entity Registrant Name	Leidos Holdings, Inc.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	20-3562868
Entity Address, Address Line One	1750 Presidents Street,
Entity Address, City or Town	Reston,
Entity Address, State or Province	VA
Entity Address, Postal Zip Code	20190
City Area Code	571
Local Phone Number	526-6000
Title of 12(b) Security	Common stock, par value $.0001 per share
Trading Symbol	LDOS
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		141,565,183
Amendment Flag	false
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q2
Entity Central Index Key	0001336920
Current Fiscal Year End Date	--12-31

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($) $ in Millions	Jul. 02, 2021	Jan. 01, 2021
Assets:
Cash and cash equivalents	$ 338	$ 524
Receivables, net	2,271	2,137
Inventory, net	251	276
Other current assets	403	402
Total current assets	3,263	3,339
Property, plant and equipment, net	654	604
Intangible assets, net	1,329	1,216
Goodwill	6,707	6,313
Operating lease right-of-use assets, net	634	581
Other assets	448	458
Total assets	13,035	12,511
Liabilities:
Accounts payable and accrued liabilities	1,944	2,175
Accrued payroll and employee benefits	683	632
Short-term debt and current portion of long-term debt	481	100
Total current liabilities	3,108	2,907
Long-term debt, net of current portion	4,639	4,644
Operating lease liabilities	600	564
Deferred tax liabilities	255	234
Other long-term liabilities	285	291
Total liabilities	8,887	8,640
Commitments and contingencies (Note 11)
Stockholders’ equity:
Common stock, $0.0001 par value, 500 million shares authorized, 142 million shares issued and outstanding at July 2, 2021 and January 1, 2021	0	0
Additional paid-in capital	2,509	2,580
Retained earnings	1,605	1,328
Accumulated other comprehensive loss	(15)	(46)
Total Leidos stockholders’ equity	4,099	3,862
Non-controlling interest	49	9
Total stockholders' equity	4,148	3,871
Total liabilities and stockholders' equity	$ 13,035	$ 12,511

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parenthetical) - $ / shares	Jul. 02, 2021	Jan. 01, 2021
Stockholders’ equity:
Common stock, par value (dollars per share)	$ 0.0001	$ 0.0001
Common stock, shares authorized (in shares)	500,000,000	500,000,000
Common stock, shares issued (in shares)	142,000,000
Common stock, shares outstanding (in shares)	142,000,000

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jul. 02, 2021	Jul. 03, 2020	Jul. 02, 2021	Jul. 03, 2020
Income Statement [Abstract]
Revenues	$ 3,448	$ 2,914	$ 6,763	$ 5,803
Cost of revenues	2,950	2,531	5,798	5,025
Selling, general and administrative expenses	224	195	392	383
Bad debt expense and recoveries	(1)	(81)	(10)	(72)
Acquisition, integration and restructuring costs	10	16	15	28
Asset impairment charges	0	11	0	11
Equity earnings of non-consolidated subsidiaries	(4)	(7)	(9)	(13)
Operating income	269	249	577	441
Non-operating expense:
Interest expense, net	(46)	(41)	(91)	(89)
Other expense, net	0	(16)	(1)	(30)
Income before income taxes	223	192	485	322
Income tax expense	(53)	(38)	(110)	(53)
Net income	170	154	375	269
Less: net income attributable to non-controlling interest	1	1	1	1
Net income attributable to Leidos common stockholders	$ 169	$ 153	$ 374	$ 268
Earnings per share:
Basic (dollars per share)	$ 1.20	$ 1.08	$ 2.65	$ 1.89
Diluted (dollars per share)	$ 1.18	$ 1.06	$ 2.62	$ 1.86

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jul. 02, 2021	Jul. 03, 2020	Jul. 02, 2021	Jul. 03, 2020
Statement of Comprehensive Income [Abstract]
Net income	$ 170	$ 154	$ 375	$ 269
Foreign currency translation adjustments	21	61	17	(13)
Unrecognized gain (loss) on derivative instruments	1	(3)	14	(45)
Pension adjustments	0	0	0	1
Total other comprehensive income (loss), net of taxes	22	58	31	(57)
Comprehensive income	192	212	406	212
Less: net income attributable to non-controlling interest	1	1	1	1
Comprehensive income attributable to Leidos common stockholders	$ 191	$ 211	$ 405	$ 211

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF EQUITY (UNAUDITED) - USD ($) shares in Millions, $ in Millions	Total	Cumulative Effect, Period of Adoption, Adjustment	Cumulative Effect, Period of Adoption, Adjusted Balance	Shares of common stock	Additional paid-in capital	Additional paid-in capitalCumulative Effect, Period of Adoption, Adjusted Balance	Retained earnings	Retained earningsCumulative Effect, Period of Adoption, Adjustment	Retained earningsCumulative Effect, Period of Adoption, Adjusted Balance	Accumulated other comprehensive loss	Accumulated other comprehensive lossCumulative Effect, Period of Adoption, Adjusted Balance	Leidos Holdings, Inc. stockholders' equity	Leidos Holdings, Inc. stockholders' equityCumulative Effect, Period of Adoption, Adjustment	Leidos Holdings, Inc. stockholders' equityCumulative Effect, Period of Adoption, Adjusted Balance	Non-controlling interest	Non-controlling interestCumulative Effect, Period of Adoption, Adjusted Balance
Beginning balance (shares) at Jan. 03, 2020				141
Beginning Balance at Jan. 03, 2020	$ 3,417	$ (1)	$ 3,416		$ 2,587	$ 2,587	$ 896	$ (1)	$ 895	$ (70)	$ (70)	$ 3,413	$ (1)	$ 3,412	$ 4	$ 4
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	115						115					115
Other comprehensive income (loss), net of taxes	(115)									(115)		(115)
Issuances of stock (shares)				1
Issuances of stock	9				9							9
Repurchases of stock and other	(32)				(32)							(32)
Dividends	(49)						(49)					(49)
Stock-based compensation	15				15							15
Ending balance (shares) at Apr. 03, 2020				142
Ending Balance at Apr. 03, 2020	3,359				2,579		961			(185)		3,355			4
Beginning balance (shares) at Jan. 03, 2020				141
Beginning Balance at Jan. 03, 2020	3,417	$ (1)	$ 3,416		2,587	$ 2,587	896	$ (1)	$ 895	(70)	$ (70)	3,413	$ (1)	$ 3,412	4	$ 4
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	269
Other comprehensive income (loss), net of taxes	(57)
Ending balance (shares) at Jul. 03, 2020				142
Ending Balance at Jul. 03, 2020	3,547				2,600		1,065			(127)		3,538			9
Beginning balance (shares) at Apr. 03, 2020				142
Beginning Balance at Apr. 03, 2020	3,359				2,579		961			(185)		3,355			4
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	154						153					153			1
Other comprehensive income (loss), net of taxes	58									58		58
Issuances of stock	8				8							8
Repurchases of stock and other	(2)				(2)							(2)
Dividends	(49)						(49)					(49)
Stock-based compensation	15				15							15
Capital contributions from non-controlling interests	4														4
Ending balance (shares) at Jul. 03, 2020				142
Ending Balance at Jul. 03, 2020	3,547				2,600		1,065			(127)		3,538			9
Beginning balance (shares) at Jan. 01, 2021				142
Beginning Balance at Jan. 01, 2021	3,871				2,580		1,328			(46)		3,862			9
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	205						205					205
Other comprehensive income (loss), net of taxes	9									9		9
Issuances of stock	14				14							14
Repurchases of stock and other (in shares)				(1)
Repurchases of stock and other	(123)				(123)							(123)
Dividends	(49)						(49)					(49)
Stock-based compensation	15				15							15
Capital contributions from non-controlling interests	38														38
Ending balance (shares) at Apr. 02, 2021				141
Ending Balance at Apr. 02, 2021	3,980				2,486		1,484			(37)		3,933			47
Beginning balance (shares) at Jan. 01, 2021				142
Beginning Balance at Jan. 01, 2021	3,871				2,580		1,328			(46)		3,862			9
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	375
Other comprehensive income (loss), net of taxes	31
Ending balance (shares) at Jul. 02, 2021				142
Ending Balance at Jul. 02, 2021	4,148				2,509		1,605			(15)		4,099			49
Beginning balance (shares) at Apr. 02, 2021				141
Beginning Balance at Apr. 02, 2021	3,980				2,486		1,484			(37)		3,933			47
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	170						169					169			1
Other comprehensive income (loss), net of taxes	22									22		22
Issuances of stock (shares)				1
Issuances of stock	9				9							9
Repurchases of stock and other	(3)				(3)							(3)
Dividends	(48)						(48)					(48)
Stock-based compensation	17				17							17
Capital contributions from non-controlling interests	1														1
Ending balance (shares) at Jul. 02, 2021				142
Ending Balance at Jul. 02, 2021	$ 4,148				$ 2,509		$ 1,605			$ (15)		$ 4,099			$ 49

CONDENSED CONSOLIDATED STATEM_4

CONDENSED CONSOLIDATED STATEMENTS OF EQUITY (UNAUDITED) (Parenthetical) - $ / shares	3 Months Ended
	Jul. 02, 2021	Jul. 03, 2020
Statement of Stockholders' Equity [Abstract]
Dividends (in dollars per share)	$ 0.34	$ 0.34

CONDENSED CONSOLIDATED STATEM_5

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Millions	6 Months Ended
	Jul. 02, 2021	Jul. 03, 2020
Cash flows from operations:
Net income	$ 375	$ 269
Adjustments to reconcile net income to net cash provided by operations:
Depreciation and amortization	157	132
Stock-based compensation	32	30
Loss on debt extinguishment	0	31
Asset impairment charges	0	11
Deferred income taxes	3	(1)
Other	(11)	11
Change in assets and liabilities, net of effects of acquisitions:
Receivables	(89)	226
Other current assets and other long-term assets	91	15
Accounts payable and accrued liabilities and other long-term liabilities	(347)	(44)
Accrued payroll and employee benefits	46	70
Income taxes receivable/payable	(1)	44
Net cash provided by operating activities	256	794
Cash flows from investing activities:
Acquisition of businesses, net of cash acquired	(593)	(2,610)
Payments for property, equipment and software	(47)	(90)
Other	0	1
Net cash used in investing activities	(640)	(2,699)
Cash flows from financing activities:
Proceeds from debt issuance	380	6,225
Payments of long-term debt	(53)	(4,203)
Payments for debt issuance costs	0	(39)
Dividend payments	(98)	(99)
Repurchases of stock and other	(126)	(34)
Capital distributions to non-controlling interests	3	0
Capital contributions from non-controlling interests	42	4
Proceeds from issuances of stock	23	16
Net cash provided by financing activities	165	1,870
Net decrease in cash, cash equivalents and restricted cash	(219)	(35)
Cash, cash equivalents and restricted cash at beginning of period	687	717
Cash, cash equivalents and restricted cash at end of period	468	682
Less: restricted cash at end of period	130	94
Cash and cash equivalents at end of period	338	588
Supplementary cash flow information:
Cash paid for income taxes, net of refunds	110	7
Cash paid for interest	102	82
Property, plant and equipment additions	0	15
Finance lease obligations	$ 45	$ 12

Basis of Presentation and Summa

Basis of Presentation and Summary of Significant Accounting Policies	6 Months Ended
	Jul. 02, 2021
Accounting Policies [Abstract]
Basis of Presentation and Summary of Significant Accounting Policies	Note 1–Basis of Presentation and Summary of Significant Accounting Policies Nature of Operations and Basis of Presentation Leidos Holdings, Inc. ("Leidos"), a Delaware corporation, is a holding company whose direct 100%-owned subsidiary and principal operating company is Leidos, Inc. Leidos is a FORTUNE 500 ® science, engineering and information technology company that provides services and solutions in the defense, intelligence, civil and health markets, both domestically and internationally. Leidos' customers include the U.S. Department of Defense ("DoD"), the U.S. Intelligence Community, the U.S. Department of Homeland Security, the Federal Aviation Administration, the Department of Veterans Affairs and many other U.S. civilian, state and local government agencies as well as foreign government agencies. Unless indicated otherwise, references to "we," "us" and "our" refer collectively to Leidos Holdings, Inc. and its consolidated subsidiaries. We operate in three reportable segments: Defense Solutions, Civil and Health. Additionally, we separately present the unallocable costs associated with corporate functions as Corporate. We have a controlling interest in Mission Support Alliance, LLC ("MSA"), a joint venture with Centerra Group, LLC. We also have a controlling interest in Hanford Mission Integration Solutions, LLC ("HMIS"), the legal entity for the follow-on contract to MSA's contract and a joint venture with Centerra Group, LLC and Parsons Government Services, Inc. The financial results for MSA and HMIS are consolidated into our unaudited condensed consolidated financial statements. The unaudited condensed consolidated financial statements also include the balances of all voting interest entities in which Leidos has a controlling voting interest ("subsidiaries") and a variable interest entity ("VIE") in which Leidos is the primary beneficiary. The consolidated balances of the VIE are not material to the unaudited condensed consolidated financial statements for the periods presented. Intercompany accounts and transactions between consolidated companies have been eliminated in consolidation. The accompanying unaudited condensed financial information has been prepared in accordance with the rules of the U.S. Securities and Exchange Commission and accounting principles generally accepted in the United States of America ("GAAP"). Certain disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingencies at the date of the financial statements, as well as the reported amounts of revenues and expenses during the reporting periods. Management evaluates these estimates and assumptions on an ongoing basis, including those relating to estimated profitability of long-term contracts, indirect billing rates, allowances for doubtful accounts, inventories, right-of-use assets and lease liabilities, fair value and impairment of intangible assets and goodwill, income taxes, stock-based compensation expense and contingencies. These estimates have been prepared by management on the basis of the most current and best available information; however, actual results could differ materially from those estimates. In the opinion of management, the accompanying unaudited condensed consolidated financial statements reflect all adjustments, which consist of normal recurring adjustments, necessary for a fair presentation thereof. The results reported in these unaudited condensed consolidated financial statements are not necessarily indicative of the results that may be expected for the entire year. These unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Annual Report on Form 10-K filed on February 23, 2021. Accounting Standards Updates ("ASU") Adopted ASU 2020-06, Debt – Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging – Contracts in Entity's Own Equity (Subtopic 815-40) In August 2020, the Financial Accounting Standards Board ("FASB") issued ASU 2020-06 which simplifies the accounting for convertible debt and convertible preferred stock by removing the requirements to separate embedded conversion features from the host convertible instruments. Additionally, the amendments in this update simplify the guidance in Subtopic 815-40 by removing certain criteria that must be satisfied in order to classify a contract as equity. This update also improves the consistency of earnings per share calculations by requiring an entity to use the if-converted method of calculating diluted earnings per share rather than the treasury stock method for convertible instruments and also by requiring the inclusion of the potential effect of shares settled in cash or shares in the diluted earnings per share calculation. The amendments in this update are effective for public entities for fiscal years beginning after December 15, 2021, and adopted using either a fully or modified retrospective approach. Early adoption is permitted, but no earlier than fiscal years beginning after December 15, 2020. Entities should adopt the guidance as of the beginning of the fiscal year of adoption and cannot adopt the guidance in an interim reporting period. Effective January 2, 2021, we adopted the requirements of ASU 2020-06 using the modified retrospective method. The adoption did not have an impact to our financial position, results of operations and earnings per share. Accounting Standards Updates Issued But Not Yet Adopted ASU 2020-04 and ASU 2021-01, Reference Rate Reform (Topic 848) In March 2020, the FASB issued ASU 2020-04 which provides companies with optional expedients and exceptions to ease the potential accounting burden associated with transitioning away from reference rates that are expected to be discontinued. This update provides optional expedients for applying accounting guidance to contracts, hedging relationships and other transactions that reference the London Interbank Offered Rate ("LIBOR") or another reference rate expected to be discontinued because of the reference rate reform. The amendments in this update are effective for all entities as of March 2020 and can be adopted using a prospective approach no later than December 31, 2022. In January 2021, the FASB issued ASU 2021-01 which amends the scope of ASU 2020-04. The amendments in this update are elective and provide optional relief for entities with hedge accounting and contract modifications affected by the discounting transition through December 31, 2022. Under this relief, entities may continue to account for contract modifications as a continuation of the existing contract and the continuation of the hedge accounting arrangement. We are currently evaluating the impacts of reference rate reform. We currently use the one-month LIBOR for which the rate publication will cease in June 2023. ASU 2021-05, Leases (Topic 842) Lessors—Certain Leases with Variable Lease Payments In July 2021, the FASB issued ASU 2021-05, which amends lessor’s accounting for leases with variable lease payments classified as sales-type or direct financing leases. The amendments in this update modify the lease classification requirements for lessors, whereby leases with variable lease payments that are not dependent on a reference index or a rate will be accounted for as operating leases if classification as a sales-type or direct financing lease would have resulted in a day-one loss. The amendments in this update are effective for public entities for fiscal years beginning after December 15, 2021, as well as interim periods within those fiscal years, and can be adopted using either a prospective or retrospective approach. Early adoption is also permitted. We are currently evaluating the impact and adoption approach for this update. Changes in Estimates on Contracts Changes in estimates related to contracts accounted for using the cost-to-cost method of accounting are recognized in the period in which such changes are made for the inception-to-date effect of the changes, with the exception of contracts acquired through a business combination, where the adjustment is made for the period commencing from the date of acquisition. Changes in estimates on contracts were as follows: Three Months Ended Six Months Ended July 2, July 3, July 2, July 3, (in millions, except per share amounts) Favorable impact $ 37 28 $ 68 $ 52 Unfavorable impact (29) (19) (48) (26) Net impact to income before income taxes $ 8 $ 9 $ 20 $ 26 Impact on diluted EPS attributable to Leidos common stockholders $ 0.04 $ 0.05 $ 0.11 $ 0.14 The impact on diluted earnings per share ("EPS") attributable to Leidos common stockholders is calculated using the statutory tax rate. Revenue Recognized from Prior Obligations Revenue recognized from performance obligations satisfied in previous periods was $9 million and $18 million for the three and six months ended July 2, 2021, respectively, and $12 million and $32 million for the three and six months ended July 3, 2020, respectively. The changes primarily related to revisions of variable consideration including award and incentive fees, and revisions to estimates at completion resulting from changes in contract scope, mitigation of contract risks or true-ups of contract estimates at the end of contract performance. Cash and Cash Equivalents Our cash equivalents are primarily comprised of investments in several large institutional money market accounts, with original maturity of three months or less. Outstanding payments are included within "Cash and cash equivalents" and "Accounts payable and accrued liabilities" correspondingly on the condensed consolidated balance sheets. At July 2, 2021 and January 1, 2021, $196 million and $237 million, respectively, of outstanding payments were included within "Cash and cash equivalents." Restricted Cash We have restricted cash balances, primarily representing advances from customers that are restricted as to use for certain expenditures related to that customer's contract and cash collected from the sale of accounts receivable but not yet remitted to the financial institution (see "Note 9–Sale of Accounts Receivable"). Restricted cash balances are included as "Other current assets" in the condensed consolidated balance sheets. Our restricted cash balances were $130 million and $163 million at July 2, 2021 and January 1, 2021, respectively.

Revenues from Contracts with Cu

Revenues from Contracts with Customers	6 Months Ended
	Jul. 02, 2021
Revenue from Contract with Customer [Abstract]
Revenues from Contracts with Customers	Note 2–Revenues from Contracts with Customers Remaining Performance Obligations Remaining performance obligations ("RPO") represent the expected value of exercised contracts, both funded and unfunded, less revenue recognized to date. Remaining performance obligations do not include unexercised option periods and future potential task orders expected to be awarded under indefinite delivery/indefinite quantity ("IDIQ") contracts, General Services Administration Schedule or other master agreement contract vehicles, with the exception of certain IDIQ contracts where task orders are not competitively awarded and separately priced but instead are used as a funding mechanism, and where there is a basis for estimating future revenues and funding on future anticipated task orders. As of July 2, 2021, we had $14.6 billion of RPO and expect to recognize approximately 51% and 81% over the next 12 months and 24 months, respectively, with the remainder to be recognized thereafter. Disaggregation of Revenues We disaggregate revenues by customer-type, contract-type and geographic location for each of our reportable segments. These categories represent how the nature, timing and uncertainty of revenues and cash flows are affected. Disaggregated revenues by customer-type were as follows: Three Months Ended July 2, 2021 Six Months Ended July 2, 2021 Defense Solutions Civil Health Total Defense Solutions Civil Health Total (in millions) DoD and U.S. Intelligence Community $ 1,466 $ 13 $ 184 $ 1,663 $ 2,873 $ 26 $ 342 $ 3,241 Other government agencies (1) 237 625 435 1,297 509 1,230 842 2,581 Commercial and non-U.S. customers 300 131 26 457 578 256 52 886 Total $ 2,003 $ 769 $ 645 $ 3,417 $ 3,960 $ 1,512 $ 1,236 $ 6,708 Three Months Ended July 3, 2020 Six Months Ended July 3, 2020 Defense Solutions Civil Health Total Defense Solutions Civil Health Total (in millions) DoD and U.S. Intelligence Community $ 1,362 $ 12 $ 123 $ 1,497 $ 2,647 $ 29 $ 247 $ 2,923 Other government agencies (1) 175 615 247 1,037 383 1,159 622 2,164 Commercial and non-U.S. customers 219 112 27 358 431 183 55 669 Total $ 1,756 $ 739 $ 397 $ 2,892 $ 3,461 $ 1,371 $ 924 $ 5,756 (1) Includes federal government agencies other than the DoD and U.S. Intelligence Community, as well as state and local government agencies. Disaggregated revenues by contract-type were as follows: Three Months Ended July 2, 2021 Six Months Ended July 2, 2021 Defense Solutions Civil Health Total Defense Solutions Civil Health Total (in millions) Cost-reimbursement and fixed-price-incentive-fee $ 1,234 $ 405 $ 125 $ 1,764 $ 2,397 $ 779 $ 224 $ 3,400 Firm-fixed-price 526 248 419 1,193 1,079 510 811 2,400 Time-and-materials and fixed-price-level-of-effort 243 116 101 460 484 223 201 908 Total $ 2,003 $ 769 $ 645 $ 3,417 $ 3,960 $ 1,512 $ 1,236 $ 6,708 Three Months Ended July 3, 2020 Six Months Ended July 3, 2020 Defense Solutions Civil Health Total Defense Solutions Civil Health Total (in millions) Cost-reimbursement and fixed-price-incentive-fee $ 1,105 $ 343 $ 64 $ 1,512 $ 2,199 $ 689 $ 129 $ 3,017 Firm-fixed-price 462 289 237 988 902 462 610 1,974 Time-and-materials and fixed-price-level-of-effort 189 107 96 392 360 220 185 765 Total $ 1,756 $ 739 $ 397 $ 2,892 $ 3,461 $ 1,371 $ 924 $ 5,756 Disaggregated revenues by geographic location were as follows: Three Months Ended July 2, 2021 Six Months Ended July 2, 2021 Defense Solutions Civil Health Total Defense Solutions Civil Health Total (in millions) United States $ 1,746 $ 728 $ 645 $ 3,119 $ 3,459 $ 1,432 $ 1,236 $ 6,127 International 257 41 — 298 501 80 — 581 Total $ 2,003 $ 769 $ 645 $ 3,417 $ 3,960 $ 1,512 $ 1,236 $ 6,708 Three Months Ended July 3, 2020 Six Months Ended July 3, 2020 Defense Solutions Civil Health Total Defense Solutions Civil Health Total (in millions) United States $ 1,560 $ 691 $ 397 $ 2,648 $ 3,073 $ 1,310 $ 924 $ 5,307 International 196 48 — 244 388 61 — 449 Total $ 1,756 $ 739 $ 397 $ 2,892 $ 3,461 $ 1,371 $ 924 $ 5,756 Revenues by customer-type, contract-type and geographic location exclude lease income of $31 million and $55 million for the three and six months ended July 2, 2021, respectively, and $22 million and $47 million for the three and six months ended July 3, 2020, respectively. Contract Assets and Liabilities Performance obligations are satisfied either over time as work progresses or at a point in time. Firm-fixed-price contracts are typically billed to the customer using milestone payments while cost-reimbursable and time and materials contracts are typically billed to the customer on a monthly or bi-weekly basis as indicated by the negotiated billing terms and conditions of the contract. As a result, the timing of revenue recognition, customer billings and cash collections for each contract results in a net contract asset or liability at the end of each reporting period. Contract assets consist of unbilled receivables, which is the amount of revenue recognized that exceeds the amount billed to the customer, where right to payment is not solely subject to the passage of time. Unbilled receivables exclude amounts billable where the right to consideration is unconditional. Contract liabilities consist of deferred revenue, which represents cash advances received prior to performance for programs and billings in excess of revenue recognized. The components of contract assets and contract liabilities consisted of the following: Balance sheet line item July 2, January 1, (in millions) Contract assets - current: Unbilled receivables Receivables, net $ 1,029 $ 906 Contract liabilities - current: Deferred revenue (1) Accounts payable and accrued liabilities $ 320 $ 481 Contract liabilities - non-current: Deferred revenue (1) Other long-term liabilities $ 18 $ 20 (1) Certain contracts record revenue on a net contract basis, and therefore, the respective deferred revenue balance will not fully convert to revenue. The increase in unbilled receivables was primarily due to the timing of billings and the acquisitions of Gibbs & Cox, Inc. ("Gibbs & Cox") and 1901 Group, LLC ("1901 Group"), partially offset by revenue recognized on certain contracts. The decrease in deferred revenue was primarily due to the timing of advance payments and revenue recognized during the period.

Acquisitions, Goodwill, and Int

Acquisitions, Goodwill, and Intangible Assets	6 Months Ended
	Jul. 02, 2021
Business Combinations [Abstract]
Acquisitions, Goodwill, and Intangible Assets	Note 3–Acquisitions, Goodwill and Intangible Assets Gibbs & Cox Acquisition On May 7, 2021 (the "Purchase Date"), we completed the acquisition of Gibbs & Cox for preliminary purchase consideration of approximately $376 million, net of $1 million of cash acquired. Gibbs & Cox is an independent engineering and design firm specializing in naval architecture, marine engineering, management support and engineering consulting. The preliminary goodwill recognized of $244 million represents intellectual capital and the acquired assembled workforce, neither of which qualify for recognition as a separate intangible asset. All of the goodwill recognized is tax deductible. The following table summarizes the preliminary fair value of intangible assets acquired at the Purchase Date and the related weighted average amortization period: Weighted average amortization period Fair value (in years) (in millions) Programs 10 $ 101 Technology 10 20 Trade names 5 4 Total 10 $ 125 The preliminary fair value and related weighted average amortization period of the intangible assets acquired were based on an industry benchmarking analysis surrounding recent and relevant industry transactions. The difference between the benchmark estimate and ultimate fair value of intangible assets identified may be material. As of July 2, 2021, we had not finalized the determination of fair values allocated to assets and liabilities, including, but not limited to, intangible assets, accounts receivables, accounts payable and accrued liabilities and other long-term liabilities. 1901 Group Acquisition On January 14, 2021 (the "Closing Date"), we completed the acquisition of 1901 Group for preliminary purchase consideration of $212 million, net of $2 million of cash acquired. The preliminary goodwill recognized of $123 million represents intellectual capital and the acquired assembled workforce, none of which qualify for recognition as separate intangible assets. Of the goodwill recognized, $103 million is tax deductible. The following table summarizes the preliminary fair value of intangible assets acquired at the Closing Date and the related weighted average amortization period: Weighted average amortization period Fair value (in years) (in millions) Technology 8 $ 43 Programs 10 37 Backlog 1 5 Total 8 $ 85 As of July 2, 2021, we had not finalized the determination of fair values allocated to assets and liabilities, including, but not limited to intangible assets, accounts receivables, accounts payable and accrued liabilities. For the three and six months ended July 2, 2021, $37 million and $50 million, respectively, of revenues related to the Gibbs & Cox and 1901 Group acquisitions were recognized within the Defense Solutions reportable segmen t. SD&A Businesses Acquisition On May 4, 2020 (the "Transaction Date"), we completed the acquisition of L3Harris Technologies' security detection and automation businesses (the "SD&A Businesses"). The SD&A Businesses were acquired for cash consideration of $1,019 million, net of $27 million of cash acquired. The purchase consideration includes the initial cash payment of $1,015 million, plus a $31 million payment for contractual net working capital acquired. The SD&A Businesses provide airport and critical infrastructure screening products, automated tray return systems and other industrial automation products. The addition of the SD&A Businesses expands the scope and scale of our global security detection and automation offerings. The final fair values of the assets acquired and liabilities assumed at the Transaction Date were as follows (in millions): Cash $ 27 Receivables 128 Inventory 106 Other current assets 26 Operating lease right-of-use assets 35 Property, plant and equipment 32 Intangible assets 355 Accounts payable and accrued liabilities (132) Accrued payroll and employee benefits (8) Operating lease liabilities (32) Deferred tax liabilities (52) Other long-term liabilities (13) Total identifiable net assets acquired 472 Goodwill 574 Purchase price $ 1,046 As of July 2, 2021, we had completed the determination of fair values of the acquired assets and liabilities assumed. The goodwill represents intellectual capital and the acquired assembled workforce. Of the goodwill recognized, $432 million is deductible for tax purposes. The following table summarizes the final fair value of intangible assets acquired at the Transaction Date and the related weighted average amortization period: Weighted average amortization period Fair value (in years) (in millions) Programs 13 $ 141 Customer relationships 10 49 Technology 10 73 In-process research and development ("IPR&D") (1) 92 Total 11 $ 355 (1) IPR&D assets are indefinite-lived at the acquisition date until placed into service, at which time such assets will be reclassified to a finite-lived amortizable intangible asset. For the three and six months ended July 2, 2021, $74 million and $146 million, respectively, of revenues related to the SD&A Businesses were recognized within the Civil reportable segment. For the three and six months ended July 3, 2020, $80 million of revenues related to the SD&A Businesses were recognized within the Civil reportable segment. Dynetics Acquisition On January 31, 2020 (the "Acquisition Date"), we completed our acquisition of Dynetics, an industry-leading applied research and national security solutions company. The addition of Dynetics will accelerate opportunities within our innovation engine that researches and develops new technologies and solutions to address the most challenging needs of our customers. All of the issued and outstanding shares of common stock of Dynetics were purchased for $1.64 billion, net of cash acquired. The final goodwill recognized of $789 million represents intellectual capital and the acquired assembled workforce. All of the goodwill recognized is deductible for tax purposes. The following table summarizes the final fair value of intangible assets acquired at the Acquisition Date and the related weighted average amortization period: Weighted average amortization period Fair value (in years) (in millions) Programs 13 $ 485 Backlog 1 32 Technology 11 11 Total 12 $ 528 For the six months ended July 2, 2021 and July 3, 2020, $567 million and $335 million, respectively, of revenues related to Dynetics were recognized within the Defense Solutions reportable segment. Acquisition and Integration Costs The following expenses were incurred related to the acquisitions of Dynetics, the SD&A Businesses, 1901 Group and Gibbs & Cox: Three Months Ended Six Months Ended July 2, July 3, July 2, July 3, (in millions) Acquisition costs $ 4 $ 12 $ 4 $ 23 Integration costs 4 3 9 3 Total acquisition and integration costs $ 8 $ 15 $ 13 $ 26 These acquisition and integration costs are recorded within Corporate and presented in "Acquisition, integration and restructuring costs" on the condensed consolidated statements of income. Goodwill The following table presents changes in the carrying amount of goodwill by reportable segment: Defense Solutions Civil Health Total (in millions) Goodwill at January 3, 2020 $ 2,039 $ 1,907 $ 966 $ 4,912 Goodwill re-allocation 429 (429) — — Acquisitions of Dynetics and the SD&A Businesses 788 569 — 1,357 Foreign currency translation adjustments 44 — — 44 Goodwill at January 1, 2021 3,300 2,047 966 6,313 Acquisitions of Dynetics, the SD&A Businesses, 1901 Group and Gibbs & Cox 368 5 — 373 Foreign currency translation adjustments (13) 34 — 21 Goodwill at July 2, 2021 $ 3,655 $ 2,086 $ 966 $ 6,707 There were no goodwill impairments during the six months ended July 2, 2021 and July 3, 2020. Intangible Assets Intangible assets, net consisted of the following: July 2, 2021 January 1, 2021 Gross carrying value Accumulated amortization Net carrying value Gross carrying value Accumulated amortization Net carrying value (in millions) Finite-lived intangible assets: Programs $ 1,774 $ (775) $ 999 $ 1,632 $ (687) $ 945 Software and technology 255 (112) 143 188 (100) 88 Customer relationships 98 (14) 84 93 (10) 83 Backlog 37 (34) 3 32 (29) 3 Trade names 5 (1) 4 1 — 1 Total finite-lived intangible assets 2,169 (936) 1,233 1,946 (826) 1,120 Indefinite-lived intangible assets: In-process research and development 92 — 92 92 — 92 Trade names 4 — 4 4 — 4 Total indefinite-lived intangible assets 96 — 96 96 — 96 Total intangible assets $ 2,265 $ (936) $ 1,329 $ 2,042 $ (826) $ 1,216 Amortization expense was $55 million and $110 million for the three and six months ended July 2, 2021, respectively, and $51 million and $94 million for the three and six months ended July 3, 2020, respectively. Program intangible assets are amortized over their respective estimated useful lives in proportion to the pattern of economic benefit based on expected future discounted cash flows. Backlog and trade name intangible assets are amortized on a straight-line basis over their estimated useful lives. Customer relationships and software and technology intangible assets are amortized either on a straight-line basis over their estimated useful lives or over their respective estimated useful lives in proportion to the pattern of economic benefit based on expected future discounted cash flows, as deemed appropriate. The estimated annual amortization expense as of July 2, 2021, was as follows: Fiscal year ending (in millions) 2021 (remainder of year) $ 113 2022 230 2023 204 2024 152 2025 125 2026 and thereafter 409 $ 1,233

Fair Value Measurements

Fair Value Measurements	6 Months Ended
	Jul. 02, 2021
Fair Value Disclosures [Abstract]
Fair Value Measurements	Note 4–Fair Value Measurements The accounting standard for fair value measurements establishes a three-level fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows: observable inputs such as quoted prices in active markets (Level 1); inputs other than quoted prices in active markets that are observable, either directly or indirectly, or quoted prices that are not active (Level 2); and unobservable inputs in which there is little or no market data (e.g., discounted cash flow and other similar pricing models), which requires us to develop our own assumptions about the assumptions that market participants would use in pricing the asset or liability (Level 3). The financial instruments measured at fair value on a recurring basis primarily consisted of the following: July 2, 2021 January 1, 2021 Carrying value Fair value Carrying value Fair value (in millions) Financial liabilities: Derivatives $ 78 $ 78 $ 103 $ 103 As of July 2, 2021, our derivatives primarily consisted of the cash flow interest rate swaps on $1.1 billion of the variable rate senior unsecured term loan (see "Note 5–Derivative Instruments"). The fair value of the cash flow interest rate swaps is determined based on observed values for underlying interest rates on the LIBOR yield curve and the underlying interest rate (Level 2 inputs). The carrying amounts of our financial instruments, other than derivatives, which include cash equivalents, accounts receivable, accounts payable and accrued expenses, are reasonable estimates of their related fair values. The carrying value of our notes receivable of $15 million as of July 2, 2021, and January 1, 2021, approximates fair value as the stated interest rates within the agreements are consistent with current market rates used in notes with similar terms in the market (Level 2 inputs). As of July 2, 2021, and January 1, 2021, the fair value of debt was $5.5 billion and $5.2 billion, respectively, and the carrying amount was $5.1 billion and $4.7 billion, respectively (see "Note 6–Debt"). The fair value of long-term debt is determined based on current interest rates available for debt with terms and maturities similar to our existing debt arrangements (Level 2 inputs). On May 7, 2021, January 14, 2021, May 4, 2020 and January 31, 2020, non-financial instruments measured at fair value on a non-recurring basis were recorded in connection with the acquisitions of Gibbs & Cox, 1901 Group, SD&A Businesses and Dynetics, respectively (see "Note 3–Acquisitions, Goodwill and Intangible Assets"). The fair values of the assets acquired and liabilities assumed were determined using Level 3 inputs. As of July 2, 2021, we did not have any assets or liabilities measured at fair value on a non-recurring basis.

Derivative Instruments

Derivative Instruments	6 Months Ended
	Jul. 02, 2021
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivative Instruments	Note 5–Derivative Instruments We manage our risk to changes in interest rates through the use of derivative instruments. We do not hold derivative instruments for trading or speculative purposes. For variable rate borrowings, we use fixed interest rate swaps, effectively converting a portion of the variable interest rate payments to fixed interest rate payments. These swaps are designated as cash flow hedges. The fair value of the interest rate swaps was as follows: Liability derivatives Balance sheet line item July 2, January 1, (in millions) Cash flow interest rate swaps Other long-term liabilities $ 78 $ 103 The cash flows associated with the interest rate swaps are classified as operating activities in the condensed consolidated statements of cash flows. Cash Flow Hedges We have interest rate swap agreements to hedge the cash flows of $1.1 billion of the variable rate senior unsecured term loan (the "Variable Rate Loan"). These interest rate swap agreements have a maturity date of August 2025 and a fixed interest rate of 3.00%. The objective of these instruments is to reduce variability in the forecasted interest payments of the Variable Rate Loan, which are based on the LIBOR rate. Under the terms of the interest rate swap agreements, we will receive monthly variable interest payments based on the one-month LIBOR rate and will pay interest at a fixed rate. The interest rate swap transactions were accounted for as cash flow hedges. The gain/loss on the swaps is reported as a component of other comprehensive loss and is reclassified into earnings when the interest payments on the underlying hedged items impact earnings. A qualitative assessment of hedge effectiveness is performed on a quarterly basis, unless facts and circumstances indicate the hedge may no longer be highly effective. The effect of the cash flow hedges on other comprehensive loss and earnings for the periods presented was as follows: Three Months Ended Six Months Ended July 2, July 3, July 2, July 3, (in millions) Total interest expense, net presented in the condensed consolidated statements of income in which the effects of cash flow hedges are recorded $ 46 $ 41 $ 91 $ 89 Amount recognized in other comprehensive income (loss) $ (3) $ (7) $ 9 $ (62) Amount reclassified from accumulated other comprehensive income (loss) to interest expense, net $ 4 $ 4 $ 9 $ 4 We expect to reclassify net losses of $21 million from accumulated other comprehensive loss into earnings during the next 12 months.

Debt

Debt	6 Months Ended
	Jul. 02, 2021
Debt Disclosure [Abstract]
Debt	Note 6–Debt Our debt consisted of the following: Stated interest rate Effective interest rate July 2, 2021 (1) January 1, 2021 (1) (in millions) Short-term debt: Senior unsecured term loans: $380 million term loan, due May 2022 1.24% 1.34% $ 380 $ — Long-term debt: Senior unsecured term loans: $1,925 million term loan, due January 2025 1.49% 1.75% 1,345 1,391 Senior secured notes: $500 million notes, due May 2023 (2) 2.95% 3.17% 498 — $500 million notes, due May 2025 (2) 3.63% 3.76% 496 — $750 million notes due May 2030 (2) 4.38% 4.50% 737 — $1,000 million notes, due February 2031 (2) 2.30% 2.38% 989 — Senior unsecured notes: $500 million notes, due May 2023 (2) 2.95% 3.17% — 497 $500 million notes, due May 2025 (2) 3.63% 3.76% — 496 $750 million notes due May 2030 (2) 4.38% 4.50% — 737 $1,000 million notes, due February 2031 (2) 2.30% 2.38% — 989 $250 million notes, due July 2032 7.13% 7.43% 247 247 $300 million notes, due July 2033 5.50% 5.88% 158 158 $300 million notes, due December 2040 5.95% 6.03% 216 216 Notes payable and finance leases due on various dates through fiscal 2032 1.56%-5.49% Various 54 13 Total long-term debt 4,740 4,744 Less current portion (101) (100) Total long-term debt, net of current portion $ 4,639 $ 4,644 (1) The carrying amounts of the senior term loans and notes as of July 2, 2021, and January 1, 2021, include the remaining principal outstanding of $5,114 million and $4,782 million, respectively, less total unamortized debt discounts and deferred debt issuances costs of $48 million and $51 million, respectively. (2) We filed a Registration Statement on Form S-4 with the Securities and Exchange Commission on May 6, 2021, and was declared effective on May 19, 2021. Term Loans and Revolving Credit Facility We have a Credit Agreement (the "Credit Agreement") with certain financial institutions, which provided for a senior unsecured term loan facility in an aggregate principal amount of $1.9 billion (the "Term Loan Facility") and a $750 million senior unsecured revolving facility (the "Revolving Facility"). Borrowings under the Credit Agreement bear interest at a rate determined, at our option, based on either an alternate base rate or a LIBOR rate plus, in each case, an applicable margin that varies depending on our credit rating. The applicable margin range for LIBOR-denominated borrowings is from 1.13% to 1.75%. Based on our current ratings, the applicable margin for LIBOR-denominated borrowings is 1.38%. Principal payments are made quarterly on the Term Loan Facility, with the majority of the principal due at maturity. Interest on the Term Loan Facility for LIBOR-denominated borrowings is payable on a periodic basis, which must be at least quarterly. The financial covenants in the Credit Agreement require that we maintain, as of the last day of each fiscal quarter, a ratio of adjusted consolidated total debt to consolidated EBITDA of not more than 3.75 to 1.00, subject to two increases to 4.50 to 1.00 following a material acquisition, and a ratio of EBITDA to consolidated interest expense of not less than 3.50 to 1.00. On May 7, 2021, we entered into a Credit Agreement (the "2021 Credit Agreement") with certain financial institutions, which provided for a senior unsecured term loan facility in an aggregate principal amount of $380 million with maturity 364 days after the 2021 Credit Agreement date. The proceeds were used to fund the acquisition of Gibbs & Cox. Borrowings under the 2021 Credit Agreement bear interest at a rate determined, at our option, based on either an alternate base rate plus 0.13% or a LIBOR rate plus 1.13%. The financial covenants in the 2021 Credit Agreement require that we maintain, as of the last day of each fiscal quarter, a ratio of adjusted consolidated total debt to consolidated EBITDA of not more than 3.75 to 1.00, subject to increases to 4.50 to 1.00 following a material acquisition, and a ratio of EBITDA to consolidated interest expense of not less than 3.50 to 1.00. The senior secured and unsecured term loans, notes and revolving credit facility are fully and unconditionally guaranteed and contain certain customary restrictive covenants, including among other things, restrictions on our ability to create liens and enter into sale and leaseback transactions under certain circumstances. We were in compliance with all covenants as of July 2, 2021. Principal Payments and Debt Issuance Costs We made principal payments on our long-term debt of $27 million and $53 million during the three and six months ended July 2, 2021, respectively, and $226 million and $228 million during the three and six months ended July 3, 2020, respectively. This activity included required principal payments on our term loans of $24 million and $48 million during the three and six months ended July 2, 2021, respectively, and $24 million for the three and six months ended July 3, 2020. During the three and six months ended July 3, 2020 we made additional payments of $2,050 million and $3,975 million, respectively, related to our refinancing activities. As of July 2, 2021 and January 1, 2021, there were no borrowings outstanding under the Revolving Facility. For the three and six months ended July 3, 2020, $12 million and $31 million of debt discount and debt issuance costs were written off related to the prior year refinancing activities. Amortization of debt discount and debt issuance costs was $2 million and $4 million for the three and six months ended July 2, 2021, respectively, and $5 million and $9 million for the three and six months ended July 3, 2020, respectively.

Accumulated Other Comprehensive

Accumulated Other Comprehensive Loss	6 Months Ended
	Jul. 02, 2021
Equity [Abstract]
Accumulated Other Comprehensive Loss	Note 7–Accumulated Other Comprehensive Loss Changes in the components of accumulated other comprehensive loss were as follows: Foreign currency translation adjustments Unrecognized gain (loss) on derivative instruments Pension adjustments Total accumulated other comprehensive loss (in millions) Balance at January 3, 2020 $ (33) $ (33) $ (4) $ (70) Other comprehensive income (loss) 70 (61) (3) 6 Taxes (7) 10 1 4 Reclassification from accumulated other comprehensive loss — 14 — 14 Balance at January 1, 2021 30 (70) (6) (46) Other comprehensive income 25 9 — 34 Taxes (8) (4) — (12) Reclassification from accumulated other comprehensive loss — 9 — 9 Balance at July 2, 2021 $ 47 $ (56) $ (6) $ (15) Reclassifications from unrecognized loss on derivative instruments are recorded in "Interest expense, net" in the condensed consolidated statements of income.

Earnings Per Share

Earnings Per Share	6 Months Ended
	Jul. 02, 2021
Earnings Per Share [Abstract]
Earnings Per Share	Note 8–Earnings Per Share The following table provides a reconciliation of the weighted average number of shares outstanding used to compute basic and diluted EPS for the periods presented: Three Months Ended Six Months Ended July 2, July 3, July 2, July 3, (in millions) Basic weighted average number of shares outstanding 141 142 141 142 Dilutive common share equivalents—stock options and other stock awards 2 2 2 2 Diluted weighted average number of shares outstanding 143 144 143 144 Anti-dilutive stock-based awards are excluded from the weighted average number of shares outstanding used to compute diluted EPS. The total outstanding stock options and vesting stock awards that were anti-dilutive were 1 million for both the three and six months ended July 2, 2021 and the three and six months July 3, 2020.

Sale of Accounts Receivable

Sale of Accounts Receivable	6 Months Ended
	Jul. 02, 2021
Receivables [Abstract]
Sale of Accounts Receivable	Note 9–Sale of Accounts Receivable We have entered into purchase agreements with a financial institution which provide us the election to sell accounts receivable at a discount. The receivables sold are typically collectable from our customers within 30 days of the sale date. During the six months ended July 2, 2021 and July 3, 2020, we sold $693 million and $1,113 million, respectively, of accounts receivable under the agreements and received proceeds of $693 million and $1,112 million, respectively, which were classified as operating activities in the condensed consolidated statements of cash flows. These transfers have been recognized as a sale, as the receivables have been legally isolated from Leidos, the financial institution has the right to pledge or exchange the assets received and we do not maintain effective control over the transferred accounts receivable. Our only continuing involvement with the transferred financial assets is as the collection and servicing agent. As a result, the accounts receivable balance on the condensed consolidated balance sheets is presented net of the transferred amounts. No servicing asset or liability was recognized for continued servicing of the sold receivables, as the servicing fee approximates fair value. The difference between the carrying amount of the receivables sold and the net cash received was recognized as a loss on sale and was recorded within "Selling, general and administrative expenses" on the condensed consolidated statements of income. Sold receivables activity for the periods presented was as follows: Six Months Ended July 2, July 3, (in millions) Sales of accounts receivable $ 693 $ 1,113 Cash collections on sold receivables remitted to financial institution (693) (888) Outstanding balance sold to financial institution — 225 Cash collected but not yet remitted to financial institution — (14) Sold receivables due from customers $ — $ 211

Business Segments

Business Segments	6 Months Ended
	Jul. 02, 2021
Segment Reporting [Abstract]
Business Segments	Note 10–Business Segments Our operations and reportable segments are organized around the customers and markets we serve. We define our reportable segments based on the way the chief operating decision maker ("CODM"), currently our Chairman and Chief Executive Officer, manages operations for the purposes of allocating resources and assessing performance. The segment information for the periods presented was as follows: Three Months Ended Six Months Ended July 2, July 3, July 2, July 3, (in millions) Revenues: Defense Solutions $ 2,004 $ 1,757 $ 3,962 $ 3,462 Civil 799 758 1,565 1,412 Health 645 399 1,236 929 Total revenues $ 3,448 $ 2,914 $ 6,763 $ 5,803 Operating income (loss): Defense Solutions $ 137 $ 119 $ 289 $ 214 Civil 55 78 129 137 Health 107 1 209 74 Corporate (30) 51 (50) 16 Total operating income $ 269 $ 249 $ 577 $ 441 The income statement performance measures used to evaluate segment performance are revenues and operating income. As a result, "Interest expense, net," "Other expense, net" and "Income tax expense" as reported in the condensed consolidated statements of income are not allocated to our segments. Under U.S. Government Cost Accounting Standards, indirect costs including depreciation expense are collected in indirect cost pools, which are then collectively allocated to the reportable segments based on a representative causal or beneficial relationship of the costs in the pool to the costs in the base. As such, depreciation expense is not separately disclosed on the condensed consolidated statements of income.

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jul. 02, 2021
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Note 11–Commitments and Contingencies Legal Proceedings MSA Joint Venture On November 10, 2015, MSA received a final decision by the Department of Energy ("DoE") contracting officer for the Mission Support Contract concluding that certain payments to MSA by the DoE for the performance of IT services by Lockheed Martin Services, Inc. ("LMSI") under a subcontract to MSA constituted alleged affiliate fees in violation of Federal Acquisition Regulations ("FAR"). Lockheed Martin Integrated Technology LLC (now known as Leidos Integrated Technology LLC) is a member entity of MSA. Subsequent to the contracting officer's final decision, MSA, LMSI, and Lockheed Martin Corporation received notice from the U.S. Attorney's Office for the Eastern District of Washington that the U.S. government had initiated a False Claims Act investigation into the facts surrounding this dispute. On February 8, 2019, the Department of Justice filed a complaint in the United States District Court for the Eastern District of Washington against MSA, Lockheed Martin Corporation, Lockheed Martin Services, Inc. and a Lockheed Martin employee ("Defendants"). The complaint alleges violations of the False Claims Act, the Anti-Kickback Act and breach of contract with the DoE, among other things. On January 13, 2020, the Defendants' motions to dismiss were granted in part and denied in part. Litigation would proceed for the False Claims Act and other common law claims, although the Anti-Kickback Act claim has been dismissed with prejudice. The U.S. Attorney's office had previously advised that a parallel criminal investigation was open, although no subjects or targets of the investigation had been identified. The U.S. Attorney's office has informed MSA that it has closed the criminal investigation. Since this issue first was raised by the DoE, MSA has asserted that the IT services performed by LMSI under a fixed-price/fixed-unit rate subcontract approved by the DoE meet the definition of a "commercial item" under the FAR and any profits earned on that subcontract are permissible. MSA filed an appeal of the contracting officer's decision with the Civilian Board of Contract Appeals ("CBCA"), which was stayed pending resolution of the False Claims Act matter. Subsequent to the filing of MSA's appeal, the contracting officer demanded that MSA reimburse the DoE in the amount of $64 million, which was his estimate of the profits earned during the period from 2010 to 2014 by LMSI. The DoE has deferred collection of $32 million of that demand, pending resolution of the appeal and without prejudice to MSA's position that it is not liable for any of the DoE's $64 million reimbursement claim. On December 10, 2019, MSA received a second final decision by the DoE contracting officer, estimating approximately $29 million in alleged unallowable profit and associated general and administrative costs during the period from 2015 to 2016 by LMSI. MSA filed an appeal of the second contracting officer's decision, which has been consolidated with the prior proceeding before the CBCA and stayed pending resolution of the False Claims Act matter. The DoE and MSA also executed an agreement to defer the entire amount of the disallowed costs from the second contracting officer's final decision until the CBCA proceedings are finally resolved. Leidos has agreed to indemnify Jacobs Group, LLC and Centerra Group, LLC for any liability MSA incurs in this matter. Under the terms of the Separation Agreement, Lockheed Martin agreed to indemnify Leidos for 100% of any damages in excess of $38 million up to $64 million, and 50% of any damages in excess of $64 million, with respect to claims asserted against MSA related to this matter. On April 5, 2021, MSA finalized the settlement of the False Claims Act litigation in the Eastern District of Washington and the related contract claim at the CBCA. Pursuant to the settlement agreement, DoE paid MSA approximately $37 million on April 19, 2021 and MSA paid the Department of Justice $3 million on April 22, 2021. Accordingly, following joint motions by the parties, the CBCA dismissed the claim before the Board with prejudice on April 28, 2021 and the District Court dismissed the False Claims Act litigation with prejudice on April 30, 2021. There remain other outstanding matters in dispute between DoE and MSA as the two parties work to close out the Mission Support Contract. As of July 2, 2021, we believe we have adequately reserved for any potential liabilities related to these disputes. Class Action Lawsuit On March 2, 2021, Leidos and certain current officers of Leidos were named as defendants in a putative class action securities lawsuit filed in the U.S. District Court for the Southern District of New York. The complaint alleges violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, as amended, and Rule 10b-5 promulgated thereunder relating to alleged misstatements or omissions in Leidos' public filings with the SEC and other public statements during the period from May 4, 2020 to February 23, 2021 relating, among other things, to Leidos' acquisition of the SD&A Businesses. The plaintiff seeks to recover from the Company and the individual defendants an unspecified amount of damages at this time. We believe the suit lacks merit and we intend to vigorously defend against it. Other Contingencies VirnetX, Inc. ("VirnetX") On April 10, 2018, a jury trial concluded in an additional patent infringement case brought by VirnetX against Apple, referred to as the Apple II case, in which the jury returned a verdict against Apple for infringement and awarded VirnetX damages in the amount of over $502 million. On April 11, 2018, in a second phase of the Apple II trial, the jury found Apple's infringement to be willful. On August 30, 2018, the federal trial court in the Eastern District of Texas entered a final judgment and rulings on post-trial motions in the Apple II case. The court affirmed the jury’s verdict of over $502 million and granted VirnetX’s motions for supplemental damages, a sunset royalty and royalty rate of $1.20 per infringing device, along with pre-judgment and post-judgment interest and costs. The court denied VirnetX’s motions for enhanced damages, attorneys’ fees and an injunction. The court also denied Apple’s motions for judgment as a matter of law and for a new trial. An additional sum of over $93 million for costs and pre-judgment interest was subsequently agreed upon pursuant to a court order, bringing the total award to VirnetX in the Apple II case to over $595 million. Apple filed an appeal of the judgment in the Apple II case with the U.S. Court of Appeals for the Federal Circuit, and on November 22, 2019, the Federal Circuit affirmed in part, reversed in part and remanded the Apple II case back to the District Court. The Federal Circuit affirmed that Apple infringed two of the patents at issue in the case, and ruled that Apple is precluded from making certain patent invalidity arguments. However, the Federal Circuit reversed the judgment that Apple infringed two other patents at issue, vacated the prior damages awarded in the Apple II case, and remanded the Apple II case back to the District Court for further proceedings regarding damages. On April 23, 2020, the District Court ordered a new trial on damages in the Apple II case, which was delayed by the coronavirus pandemic and started on October 26, 2020. On October 30, 2020, the jury awarded VirnetX $503 million in damages and specified a royalty rate of $0.84 per infringing device. Apple is expected to appeal this decision. In January 2021, the District Court entered final judgment affirming the jury award and the parties separately agreed on additional costs and interest of over $75 million, subject to Apple's appeal. On February 4, 2021, Apple filed a notice of appeal with the U.S. Court of Appeals for the Federal Circuit in the Apple II case. Under our agreements with VirnetX, Leidos would receive 25% of the proceeds obtained by VirnetX after reduction for attorneys' fees and costs. However, the verdict in the Apple II case remains subject to the ongoing and potential future proceedings and appeals. In addition, the patents at issue in these cases are subject to U.S. Patent and Trademark Office post-grant inter partes review and/or reexamination proceedings and related appeals, which may result in all or part of these patents being invalidated or the claims of the patents being limited. Thus, no assurances can be given when or if we will receive any proceeds in connection with these jury awards. In addition, if Leidos receives any proceeds, we are required to pay a royalty to the customer who paid for the development of the technology. Government Investigations and Reviews We are routinely subject to investigations and reviews relating to compliance with various laws and regulations with respect to our role as a contractor to federal, state and local government customers and in connection with performing services in countries outside of the United States. Adverse findings could have a material effect on our business, financial position, results of operations and cash flows due to our reliance on government contracts. As of July 2, 2021, indirect cost active audits by the Defense Contract Audit Agency remain open for fiscal 2016 and subsequent fiscal years. Although we have recorded contract revenues based upon an estimate of costs that we believe will be approved upon final audit or review, we cannot predict the outcome of any ongoing or future audits or reviews and adjustments, and if future adjustments exceed estimates, our profitability may be adversely affected. As of July 2, 2021, we believe we have adequately reserved for potential adjustments from audits or reviews of contract costs. Commitments We have outstanding letters of credit of $75 million as of July 2, 2021, principally related to performance guarantees on contracts. We also have outstanding surety bonds with a notional amount of $131 million, principally related to performance and subcontractor payment bonds on contracts. The value of the surety bonds may vary due to changes in the underlying project status and/or contractual modifications. As of July 2, 2021, the future expirations of the outstanding letters of credit and surety bonds were as follows: Fiscal year ending (in millions) 2021 (remainder of year) $ 79 2022 103 2023 4 2024 2 2025 2 2026 and thereafter 16 $ 206

Subsequent Events

Subsequent Events	6 Months Ended
	Jul. 02, 2021
Subsequent Events [Abstract]
Subsequent Events	Note 12–Subsequent Events Commercial paper program On July 12, 2021, Leidos, Inc. established a commercial paper program in which the Company may issue short-term unsecured commercial paper notes ("Commercial Paper Notes") not to exceed $750 million. The Commercial Paper Notes will have maturities of up to 397 days from the date of issuance. The net proceeds of the Commercial Paper Notes are expected to be used for general corporate purposes, including working capital, capital expenditures, acquisitions and share repurchases.

Basis of Presentation and Sum_2

Basis of Presentation and Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Jul. 02, 2021
Accounting Policies [Abstract]
Consolidation	We have a controlling interest in Mission Support Alliance, LLC ("MSA"), a joint venture with Centerra Group, LLC. We also have a controlling interest in Hanford Mission Integration Solutions, LLC ("HMIS"), the legal entity for the follow-on contract to MSA's contract and a joint venture with Centerra Group, LLC and Parsons Government Services, Inc. The financial results for MSA and HMIS are consolidated into our unaudited condensed consolidated financial statements. The unaudited condensed consolidated financial statements also include the balances of all voting interest entities in which Leidos has a controlling voting interest ("subsidiaries") and a variable interest entity ("VIE") in which Leidos is the primary beneficiary. The consolidated balances of the VIE are not material to the unaudited condensed consolidated financial statements for the periods presented. Intercompany accounts and transactions between consolidated companies have been eliminated in consolidation.
Basis of Accounting	The accompanying unaudited condensed financial information has been prepared in accordance with the rules of the U.S. Securities and Exchange Commission and accounting principles generally accepted in the United States of America ("GAAP"). Certain disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules.
Estimates	The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingencies at the date of the financial statements, as well as the reported amounts of revenues and expenses during the reporting periods. Management evaluates these estimates and assumptions on an ongoing basis, including those relating to estimated profitability of long-term contracts, indirect billing rates, allowances for doubtful accounts, inventories, right-of-use assets and lease liabilities, fair value and impairment of intangible assets and goodwill, income taxes, stock-based compensation expense and contingencies. These estimates have been prepared by management on the basis of the most current and best available information; however, actual results could differ materially from those estimates.
Accounting Standards Updates Adopted and Updates Issued But Not Yet Adopted	ASU 2020-06, Debt – Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging – Contracts in Entity's Own Equity (Subtopic 815-40) In August 2020, the Financial Accounting Standards Board ("FASB") issued ASU 2020-06 which simplifies the accounting for convertible debt and convertible preferred stock by removing the requirements to separate embedded conversion features from the host convertible instruments. Additionally, the amendments in this update simplify the guidance in Subtopic 815-40 by removing certain criteria that must be satisfied in order to classify a contract as equity. This update also improves the consistency of earnings per share calculations by requiring an entity to use the if-converted method of calculating diluted earnings per share rather than the treasury stock method for convertible instruments and also by requiring the inclusion of the potential effect of shares settled in cash or shares in the diluted earnings per share calculation. The amendments in this update are effective for public entities for fiscal years beginning after December 15, 2021, and adopted using either a fully or modified retrospective approach. Early adoption is permitted, but no earlier than fiscal years beginning after December 15, 2020. Entities should adopt the guidance as of the beginning of the fiscal year of adoption and cannot adopt the guidance in an interim reporting period. Effective January 2, 2021, we adopted the requirements of ASU 2020-06 using the modified retrospective method. The adoption did not have an impact to our financial position, results of operations and earnings per share. Accounting Standards Updates Issued But Not Yet Adopted ASU 2020-04 and ASU 2021-01, Reference Rate Reform (Topic 848) In March 2020, the FASB issued ASU 2020-04 which provides companies with optional expedients and exceptions to ease the potential accounting burden associated with transitioning away from reference rates that are expected to be discontinued. This update provides optional expedients for applying accounting guidance to contracts, hedging relationships and other transactions that reference the London Interbank Offered Rate ("LIBOR") or another reference rate expected to be discontinued because of the reference rate reform. The amendments in this update are effective for all entities as of March 2020 and can be adopted using a prospective approach no later than December 31, 2022. In January 2021, the FASB issued ASU 2021-01 which amends the scope of ASU 2020-04. The amendments in this update are elective and provide optional relief for entities with hedge accounting and contract modifications affected by the discounting transition through December 31, 2022. Under this relief, entities may continue to account for contract modifications as a continuation of the existing contract and the continuation of the hedge accounting arrangement. We are currently evaluating the impacts of reference rate reform. We currently use the one-month LIBOR for which the rate publication will cease in June 2023. ASU 2021-05, Leases (Topic 842) Lessors—Certain Leases with Variable Lease Payments In July 2021, the FASB issued ASU 2021-05, which amends lessor’s accounting for leases with variable lease payments classified as sales-type or direct financing leases. The amendments in this update modify the lease classification requirements for lessors, whereby leases with variable lease payments that are not dependent on a reference index or a rate will be accounted for as operating leases if classification as a sales-type or direct financing lease would have resulted in a day-one loss. The amendments in this update are effective for public entities for fiscal years beginning after December 15, 2021, as well as interim periods within those fiscal years, and can be adopted using either a prospective or retrospective approach. Early adoption is also permitted. We are currently evaluating the impact and adoption approach for this update.
Changes in Estimates on Contracts	Changes in estimates related to contracts accounted for using the cost-to-cost method of accounting are recognized in the period in which such changes are made for the inception-to-date effect of the changes, with the exception of contracts acquired through a business combination, where the adjustment is made for the period commencing from the date of acquisition.The impact on diluted earnings per share ("EPS") attributable to Leidos common stockholders is calculated using the statutory tax rate.
Cash and Cash Equivalents	Our cash equivalents are primarily comprised of investments in several large institutional money market accounts, with original maturity of three months or less. Outstanding payments are included within "Cash and cash equivalents" and "Accounts payable and accrued liabilities" correspondingly on the condensed consolidated balance sheets.
Restricted Cash	We have restricted cash balances, primarily representing advances from customers that are restricted as to use for certain expenditures related to that customer's contract and cash collected from the sale of accounts receivable but not yet remitted to the financial institution (see "Note 9–Sale of Accounts Receivable"). Restricted cash balances are included as "Other current assets" in the condensed consolidated balance sheets.

Basis of Presentation and Sum_3

Basis of Presentation and Summary of Significant Accounting Policies (Tables)	6 Months Ended
	Jul. 02, 2021
Accounting Policies [Abstract]
Schedule of changes In estimates on contracts	Changes in estimates on contracts were as follows: Three Months Ended Six Months Ended July 2, July 3, July 2, July 3, (in millions, except per share amounts) Favorable impact $ 37 28 $ 68 $ 52 Unfavorable impact (29) (19) (48) (26) Net impact to income before income taxes $ 8 $ 9 $ 20 $ 26 Impact on diluted EPS attributable to Leidos common stockholders $ 0.04 $ 0.05 $ 0.11 $ 0.14

Revenues from Contracts with _2

Revenues from Contracts with Customers (Tables)	6 Months Ended
	Jul. 02, 2021
Revenue from Contract with Customer [Abstract]
Schedule of disaggregated revenues	Disaggregated revenues by customer-type were as follows: Three Months Ended July 2, 2021 Six Months Ended July 2, 2021 Defense Solutions Civil Health Total Defense Solutions Civil Health Total (in millions) DoD and U.S. Intelligence Community $ 1,466 $ 13 $ 184 $ 1,663 $ 2,873 $ 26 $ 342 $ 3,241 Other government agencies (1) 237 625 435 1,297 509 1,230 842 2,581 Commercial and non-U.S. customers 300 131 26 457 578 256 52 886 Total $ 2,003 $ 769 $ 645 $ 3,417 $ 3,960 $ 1,512 $ 1,236 $ 6,708 Three Months Ended July 3, 2020 Six Months Ended July 3, 2020 Defense Solutions Civil Health Total Defense Solutions Civil Health Total (in millions) DoD and U.S. Intelligence Community $ 1,362 $ 12 $ 123 $ 1,497 $ 2,647 $ 29 $ 247 $ 2,923 Other government agencies (1) 175 615 247 1,037 383 1,159 622 2,164 Commercial and non-U.S. customers 219 112 27 358 431 183 55 669 Total $ 1,756 $ 739 $ 397 $ 2,892 $ 3,461 $ 1,371 $ 924 $ 5,756 (1) Includes federal government agencies other than the DoD and U.S. Intelligence Community, as well as state and local government agencies. Disaggregated revenues by contract-type were as follows: Three Months Ended July 2, 2021 Six Months Ended July 2, 2021 Defense Solutions Civil Health Total Defense Solutions Civil Health Total (in millions) Cost-reimbursement and fixed-price-incentive-fee $ 1,234 $ 405 $ 125 $ 1,764 $ 2,397 $ 779 $ 224 $ 3,400 Firm-fixed-price 526 248 419 1,193 1,079 510 811 2,400 Time-and-materials and fixed-price-level-of-effort 243 116 101 460 484 223 201 908 Total $ 2,003 $ 769 $ 645 $ 3,417 $ 3,960 $ 1,512 $ 1,236 $ 6,708 Three Months Ended July 3, 2020 Six Months Ended July 3, 2020 Defense Solutions Civil Health Total Defense Solutions Civil Health Total (in millions) Cost-reimbursement and fixed-price-incentive-fee $ 1,105 $ 343 $ 64 $ 1,512 $ 2,199 $ 689 $ 129 $ 3,017 Firm-fixed-price 462 289 237 988 902 462 610 1,974 Time-and-materials and fixed-price-level-of-effort 189 107 96 392 360 220 185 765 Total $ 1,756 $ 739 $ 397 $ 2,892 $ 3,461 $ 1,371 $ 924 $ 5,756 Disaggregated revenues by geographic location were as follows: Three Months Ended July 2, 2021 Six Months Ended July 2, 2021 Defense Solutions Civil Health Total Defense Solutions Civil Health Total (in millions) United States $ 1,746 $ 728 $ 645 $ 3,119 $ 3,459 $ 1,432 $ 1,236 $ 6,127 International 257 41 — 298 501 80 — 581 Total $ 2,003 $ 769 $ 645 $ 3,417 $ 3,960 $ 1,512 $ 1,236 $ 6,708 Three Months Ended July 3, 2020 Six Months Ended July 3, 2020 Defense Solutions Civil Health Total Defense Solutions Civil Health Total (in millions) United States $ 1,560 $ 691 $ 397 $ 2,648 $ 3,073 $ 1,310 $ 924 $ 5,307 International 196 48 — 244 388 61 — 449 Total $ 1,756 $ 739 $ 397 $ 2,892 $ 3,461 $ 1,371 $ 924 $ 5,756
Components of contract assets and contract liabilities	The components of contract assets and contract liabilities consisted of the following: Balance sheet line item July 2, January 1, (in millions) Contract assets - current: Unbilled receivables Receivables, net $ 1,029 $ 906 Contract liabilities - current: Deferred revenue (1) Accounts payable and accrued liabilities $ 320 $ 481 Contract liabilities - non-current: Deferred revenue (1) Other long-term liabilities $ 18 $ 20 (1) Certain contracts record revenue on a net contract basis, and therefore, the respective deferred revenue balance will not fully convert to revenue.

Acquisitions, Goodwill, and I_2

Acquisitions, Goodwill, and Intangible Assets (Tables)	6 Months Ended
	Jul. 02, 2021
Business Combinations [Abstract]
Schedule of preliminary fair values of intangible assets acquired and related weighted average amortization periods	The following table summarizes the preliminary fair value of intangible assets acquired at the Purchase Date and the related weighted average amortization period: Weighted average amortization period Fair value (in years) (in millions) Programs 10 $ 101 Technology 10 20 Trade names 5 4 Total 10 $ 125 The following table summarizes the preliminary fair value of intangible assets acquired at the Closing Date and the related weighted average amortization period: Weighted average amortization period Fair value (in years) (in millions) Technology 8 $ 43 Programs 10 37 Backlog 1 5 Total 8 $ 85 The following table summarizes the final fair value of intangible assets acquired at the Acquisition Date and the related weighted average amortization period: Weighted average amortization period Fair value (in years) (in millions) Programs 13 $ 485 Backlog 1 32 Technology 11 11 Total 12 $ 528
Schedule of preliminary fair values of the assets acquired and liabilities assumed	The final fair values of the assets acquired and liabilities assumed at the Transaction Date were as follows (in millions): Cash $ 27 Receivables 128 Inventory 106 Other current assets 26 Operating lease right-of-use assets 35 Property, plant and equipment 32 Intangible assets 355 Accounts payable and accrued liabilities (132) Accrued payroll and employee benefits (8) Operating lease liabilities (32) Deferred tax liabilities (52) Other long-term liabilities (13) Total identifiable net assets acquired 472 Goodwill 574 Purchase price $ 1,046
Schedule of preliminary fair values of intangible assets acquired and related weighted average amortization periods	The following table summarizes the final fair value of intangible assets acquired at the Transaction Date and the related weighted average amortization period: Weighted average amortization period Fair value (in years) (in millions) Programs 13 $ 141 Customer relationships 10 49 Technology 10 73 In-process research and development ("IPR&D") (1) 92 Total 11 $ 355 (1) IPR&D assets are indefinite-lived at the acquisition date until placed into service, at which time such assets will be reclassified to a finite-lived amortizable intangible asset.
Acquisition expenses incurred	The following expenses were incurred related to the acquisitions of Dynetics, the SD&A Businesses, 1901 Group and Gibbs & Cox: Three Months Ended Six Months Ended July 2, July 3, July 2, July 3, (in millions) Acquisition costs $ 4 $ 12 $ 4 $ 23 Integration costs 4 3 9 3 Total acquisition and integration costs $ 8 $ 15 $ 13 $ 26
Schedule of carrying amount of goodwill by reportable segment	The following table presents changes in the carrying amount of goodwill by reportable segment: Defense Solutions Civil Health Total (in millions) Goodwill at January 3, 2020 $ 2,039 $ 1,907 $ 966 $ 4,912 Goodwill re-allocation 429 (429) — — Acquisitions of Dynetics and the SD&A Businesses 788 569 — 1,357 Foreign currency translation adjustments 44 — — 44 Goodwill at January 1, 2021 3,300 2,047 966 6,313 Acquisitions of Dynetics, the SD&A Businesses, 1901 Group and Gibbs & Cox 368 5 — 373 Foreign currency translation adjustments (13) 34 — 21 Goodwill at July 2, 2021 $ 3,655 $ 2,086 $ 966 $ 6,707
Schedule of intangible assets	Intangible assets, net consisted of the following: July 2, 2021 January 1, 2021 Gross carrying value Accumulated amortization Net carrying value Gross carrying value Accumulated amortization Net carrying value (in millions) Finite-lived intangible assets: Programs $ 1,774 $ (775) $ 999 $ 1,632 $ (687) $ 945 Software and technology 255 (112) 143 188 (100) 88 Customer relationships 98 (14) 84 93 (10) 83 Backlog 37 (34) 3 32 (29) 3 Trade names 5 (1) 4 1 — 1 Total finite-lived intangible assets 2,169 (936) 1,233 1,946 (826) 1,120 Indefinite-lived intangible assets: In-process research and development 92 — 92 92 — 92 Trade names 4 — 4 4 — 4 Total indefinite-lived intangible assets 96 — 96 96 — 96 Total intangible assets $ 2,265 $ (936) $ 1,329 $ 2,042 $ (826) $ 1,216
Schedule of estimated annual amortization expense	The estimated annual amortization expense as of July 2, 2021, was as follows: Fiscal year ending (in millions) 2021 (remainder of year) $ 113 2022 230 2023 204 2024 152 2025 125 2026 and thereafter 409 $ 1,233

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	6 Months Ended
	Jul. 02, 2021
Fair Value Disclosures [Abstract]
Schedule of financial assets measured on a recurring basis	The financial instruments measured at fair value on a recurring basis primarily consisted of the following: July 2, 2021 January 1, 2021 Carrying value Fair value Carrying value Fair value (in millions) Financial liabilities: Derivatives $ 78 $ 78 $ 103 $ 103

Derivative Instruments (Tables)

Derivative Instruments (Tables)	6 Months Ended
	Jul. 02, 2021
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Schedule of fair value of the Company's interest rate swaps	The fair value of the interest rate swaps was as follows: Liability derivatives Balance sheet line item July 2, January 1, (in millions) Cash flow interest rate swaps Other long-term liabilities $ 78 $ 103
Schedule of effect of the Company's cash flow hedges on other comprehensive income and earnings	The effect of the cash flow hedges on other comprehensive loss and earnings for the periods presented was as follows: Three Months Ended Six Months Ended July 2, July 3, July 2, July 3, (in millions) Total interest expense, net presented in the condensed consolidated statements of income in which the effects of cash flow hedges are recorded $ 46 $ 41 $ 91 $ 89 Amount recognized in other comprehensive income (loss) $ (3) $ (7) $ 9 $ (62) Amount reclassified from accumulated other comprehensive income (loss) to interest expense, net $ 4 $ 4 $ 9 $ 4

Debt (Tables)

Debt (Tables)	6 Months Ended
	Jul. 02, 2021
Debt Disclosure [Abstract]
Schedule of Company's debt	Our debt consisted of the following: Stated interest rate Effective interest rate July 2, 2021 (1) January 1, 2021 (1) (in millions) Short-term debt: Senior unsecured term loans: $380 million term loan, due May 2022 1.24% 1.34% $ 380 $ — Long-term debt: Senior unsecured term loans: $1,925 million term loan, due January 2025 1.49% 1.75% 1,345 1,391 Senior secured notes: $500 million notes, due May 2023 (2) 2.95% 3.17% 498 — $500 million notes, due May 2025 (2) 3.63% 3.76% 496 — $750 million notes due May 2030 (2) 4.38% 4.50% 737 — $1,000 million notes, due February 2031 (2) 2.30% 2.38% 989 — Senior unsecured notes: $500 million notes, due May 2023 (2) 2.95% 3.17% — 497 $500 million notes, due May 2025 (2) 3.63% 3.76% — 496 $750 million notes due May 2030 (2) 4.38% 4.50% — 737 $1,000 million notes, due February 2031 (2) 2.30% 2.38% — 989 $250 million notes, due July 2032 7.13% 7.43% 247 247 $300 million notes, due July 2033 5.50% 5.88% 158 158 $300 million notes, due December 2040 5.95% 6.03% 216 216 Notes payable and finance leases due on various dates through fiscal 2032 1.56%-5.49% Various 54 13 Total long-term debt 4,740 4,744 Less current portion (101) (100) Total long-term debt, net of current portion $ 4,639 $ 4,644 (1) The carrying amounts of the senior term loans and notes as of July 2, 2021, and January 1, 2021, include the remaining principal outstanding of $5,114 million and $4,782 million, respectively, less total unamortized debt discounts and deferred debt issuances costs of $48 million and $51 million, respectively. (2) We filed a Registration Statement on Form S-4 with the Securities and Exchange Commission on May 6, 2021, and was declared effective on May 19, 2021.

Accumulated Other Comprehensi_2

Accumulated Other Comprehensive Loss (Tables)	6 Months Ended
	Jul. 02, 2021
Equity [Abstract]
Schedule of changes in the components of accumulated other comprehensive (loss) income	Changes in the components of accumulated other comprehensive loss were as follows: Foreign currency translation adjustments Unrecognized gain (loss) on derivative instruments Pension adjustments Total accumulated other comprehensive loss (in millions) Balance at January 3, 2020 $ (33) $ (33) $ (4) $ (70) Other comprehensive income (loss) 70 (61) (3) 6 Taxes (7) 10 1 4 Reclassification from accumulated other comprehensive loss — 14 — 14 Balance at January 1, 2021 30 (70) (6) (46) Other comprehensive income 25 9 — 34 Taxes (8) (4) — (12) Reclassification from accumulated other comprehensive loss — 9 — 9 Balance at July 2, 2021 $ 47 $ (56) $ (6) $ (15)

Earnings Per Share (Tables)

Earnings Per Share (Tables)	6 Months Ended
	Jul. 02, 2021
Earnings Per Share [Abstract]
Reconciliation of the weighted average number of shares outstanding used to compute basic and diluted EPS	The following table provides a reconciliation of the weighted average number of shares outstanding used to compute basic and diluted EPS for the periods presented: Three Months Ended Six Months Ended July 2, July 3, July 2, July 3, (in millions) Basic weighted average number of shares outstanding 141 142 141 142 Dilutive common share equivalents—stock options and other stock awards 2 2 2 2 Diluted weighted average number of shares outstanding 143 144 143 144

Sale of Accounts Receivable (Ta

Sale of Accounts Receivable (Tables)	6 Months Ended
	Jul. 02, 2021
Receivables [Abstract]
Accounts receivable sale activity	Sold receivables activity for the periods presented was as follows: Six Months Ended July 2, July 3, (in millions) Sales of accounts receivable $ 693 $ 1,113 Cash collections on sold receivables remitted to financial institution (693) (888) Outstanding balance sold to financial institution — 225 Cash collected but not yet remitted to financial institution — (14) Sold receivables due from customers $ — $ 211

Business Segments (Tables)

Business Segments (Tables)	6 Months Ended
	Jul. 02, 2021
Segment Reporting [Abstract]
Schedule of segment reporting information by segment	The segment information for the periods presented was as follows: Three Months Ended Six Months Ended July 2, July 3, July 2, July 3, (in millions) Revenues: Defense Solutions $ 2,004 $ 1,757 $ 3,962 $ 3,462 Civil 799 758 1,565 1,412 Health 645 399 1,236 929 Total revenues $ 3,448 $ 2,914 $ 6,763 $ 5,803 Operating income (loss): Defense Solutions $ 137 $ 119 $ 289 $ 214 Civil 55 78 129 137 Health 107 1 209 74 Corporate (30) 51 (50) 16 Total operating income $ 269 $ 249 $ 577 $ 441

Commitment and Contingencies (T

Commitment and Contingencies (Tables)	6 Months Ended
	Jul. 02, 2021
Commitments and Contingencies Disclosure [Abstract]
Guaranteed obligation, fiscal year maturity	As of July 2, 2021, the future expirations of the outstanding letters of credit and surety bonds were as follows: Fiscal year ending (in millions) 2021 (remainder of year) $ 79 2022 103 2023 4 2024 2 2025 2 2026 and thereafter 16 $ 206

Basis of Presentation and Sum_4

Basis of Presentation and Summary of Significant Accounting Policies (Narrative) (Details) $ in Millions	3 Months Ended		6 Months Ended
	Jul. 02, 2021USD ($)	Jul. 03, 2020USD ($)	Jul. 02, 2021USD ($)segment	Jul. 03, 2020USD ($)	Jan. 01, 2021USD ($)
Significant Accounting Policies [Line Items]
Number of reportable segments | segment			3
Revenue recognized for performance obligation satisfied in the previous periods	$ 9	$ 12	$ 18	$ 32
Accounts payable and accrued liabilities	1,944		1,944		$ 2,175
Restricted cash balances	130		130		163
Cash and Cash Equivalents
Significant Accounting Policies [Line Items]
Accounts payable and accrued liabilities	$ 196		$ 196		$ 237

Basis of Presentation and Sum_5

Basis of Presentation and Summary of Significant Accounting Policies (Changes in Estimates on Contracts) (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended		6 Months Ended
	Jul. 02, 2021	Jul. 03, 2020	Jul. 02, 2021	Jul. 03, 2020
Accounting Policies [Abstract]
Favorable impact	$ 37	$ 28	$ 68	$ 52
Unfavorable impact	(29)	(19)	(48)	(26)
Net impact to income before income taxes	$ 8	$ 9	$ 20	$ 26
Impact on diluted EPS attributable to Leidos common stockholders (usd per share)	$ 0.04	$ 0.05	$ 0.11	$ 0.14

Revenues from Contracts with _3

Revenues from Contracts with Customers (Narrative) (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jul. 02, 2021	Jul. 03, 2020	Jul. 02, 2021	Jul. 03, 2020
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Remaining performance obligations, which are expected to be recognized as revenue	$ 14,600		$ 14,600
Revenue recognized under ASC 842	31	$ 22	55	$ 47
Contract liability revenue recognized	$ 78	$ 81	$ 222	$ 226
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-07-03
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Remaining performance obligations, which are expected to be recognized as revenue (as percent)	51.00%		51.00%
Remaining performance obligations, which are expected to be recognized as revenue, period (in months)	12 months		12 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-07-03
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Remaining performance obligations, which are expected to be recognized as revenue (as percent)	81.00%		81.00%
Remaining performance obligations, which are expected to be recognized as revenue, period (in months)	24 months		24 months

Revenues from Contracts with _4

Revenues from Contracts with Customers (Disaggregation of revenue) (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jul. 02, 2021	Jul. 03, 2020	Jul. 02, 2021	Jul. 03, 2020
Disaggregation of Revenue [Line Items]
Revenues	$ 3,417	$ 2,892	$ 6,708	$ 5,756
United States
Disaggregation of Revenue [Line Items]
Revenues	3,119	2,648	6,127	5,307
International
Disaggregation of Revenue [Line Items]
Revenues	298	244	581	449
Cost-reimbursement and fixed-price-incentive-fee
Disaggregation of Revenue [Line Items]
Revenues	1,764	1,512	3,400	3,017
Firm-fixed-price
Disaggregation of Revenue [Line Items]
Revenues	1,193	988	2,400	1,974
Time-and-materials and fixed-price-level-of-effort
Disaggregation of Revenue [Line Items]
Revenues	460	392	908	765
DoD and U.S. Intelligence Community
Disaggregation of Revenue [Line Items]
Revenues	1,663	1,497	3,241	2,923
Other government agencies
Disaggregation of Revenue [Line Items]
Revenues	1,297	1,037	2,581	2,164
Commercial and non-U.S. customers
Disaggregation of Revenue [Line Items]
Revenues	457	358	886	669
Defense Solutions
Disaggregation of Revenue [Line Items]
Revenues	2,003	1,756	3,960	3,461
Defense Solutions | United States
Disaggregation of Revenue [Line Items]
Revenues	1,746	1,560	3,459	3,073
Defense Solutions | International
Disaggregation of Revenue [Line Items]
Revenues	257	196	501	388
Defense Solutions | Cost-reimbursement and fixed-price-incentive-fee
Disaggregation of Revenue [Line Items]
Revenues	1,234	1,105	2,397	2,199
Defense Solutions | Firm-fixed-price
Disaggregation of Revenue [Line Items]
Revenues	526	462	1,079	902
Defense Solutions | Time-and-materials and fixed-price-level-of-effort
Disaggregation of Revenue [Line Items]
Revenues	243	189	484	360
Defense Solutions | DoD and U.S. Intelligence Community
Disaggregation of Revenue [Line Items]
Revenues	1,466	1,362	2,873	2,647
Defense Solutions | Other government agencies
Disaggregation of Revenue [Line Items]
Revenues	237	175	509	383
Defense Solutions | Commercial and non-U.S. customers
Disaggregation of Revenue [Line Items]
Revenues	300	219	578	431
Civil
Disaggregation of Revenue [Line Items]
Revenues	769	739	1,512	1,371
Civil | United States
Disaggregation of Revenue [Line Items]
Revenues	728	691	1,432	1,310
Civil | International
Disaggregation of Revenue [Line Items]
Revenues	41	48	80	61
Civil | Cost-reimbursement and fixed-price-incentive-fee
Disaggregation of Revenue [Line Items]
Revenues	405	343	779	689
Civil | Firm-fixed-price
Disaggregation of Revenue [Line Items]
Revenues	248	289	510	462
Civil | Time-and-materials and fixed-price-level-of-effort
Disaggregation of Revenue [Line Items]
Revenues	116	107	223	220
Civil | DoD and U.S. Intelligence Community
Disaggregation of Revenue [Line Items]
Revenues	13	12	26	29
Civil | Other government agencies
Disaggregation of Revenue [Line Items]
Revenues	625	615	1,230	1,159
Civil | Commercial and non-U.S. customers
Disaggregation of Revenue [Line Items]
Revenues	131	112	256	183
Health
Disaggregation of Revenue [Line Items]
Revenues	645	397	1,236	924
Health | United States
Disaggregation of Revenue [Line Items]
Revenues	645	397	1,236	924
Health | International
Disaggregation of Revenue [Line Items]
Revenues	0	0	0	0
Health | Cost-reimbursement and fixed-price-incentive-fee
Disaggregation of Revenue [Line Items]
Revenues	125	64	224	129
Health | Firm-fixed-price
Disaggregation of Revenue [Line Items]
Revenues	419	237	811	610
Health | Time-and-materials and fixed-price-level-of-effort
Disaggregation of Revenue [Line Items]
Revenues	101	96	201	185
Health | DoD and U.S. Intelligence Community
Disaggregation of Revenue [Line Items]
Revenues	184	123	342	247
Health | Other government agencies
Disaggregation of Revenue [Line Items]
Revenues	435	247	842	622
Health | Commercial and non-U.S. customers
Disaggregation of Revenue [Line Items]
Revenues	$ 26	$ 27	$ 52	$ 55

Revenues from Contracts with _5

Revenues from Contracts with Customers (Contract Asset and Liabilities) (Details) - USD ($) $ in Millions	Jul. 02, 2021	Jan. 01, 2021
Revenue from Contract with Customer [Abstract]
Contract assets - current:	$ 1,029	$ 906
Contract liabilities - current:	320	481
Contract liabilities - non-current:	$ 18	$ 20

Acquisitions, Goodwill, and I_3

Acquisitions, Goodwill, and Intangible Assets (Narrative) (Details) - USD ($)	May 07, 2021	Jan. 14, 2021	May 04, 2020	Jan. 31, 2020	Jul. 02, 2021	Jul. 03, 2020	Jul. 02, 2021	Jul. 03, 2020	Jan. 01, 2021	Jan. 03, 2020
Restructuring Cost and Reserve [Line Items]
Goodwill					$ 6,707,000,000		$ 6,707,000,000		$ 6,313,000,000	$ 4,912,000,000
Revenues					3,417,000,000	$ 2,892,000,000	6,708,000,000	$ 5,756,000,000
Payments to acquire businesses, net of cash acquired							593,000,000	2,610,000,000
Goodwill impairments							0	0
Amortization expense					55,000,000	51,000,000	110,000,000	94,000,000
Gibbs & Cox
Restructuring Cost and Reserve [Line Items]
Preliminary purchase consideration	$ 376,000,000
Cash acquired	1,000,000
Goodwill	$ 244,000,000
Revenue					37,000,000		50,000,000
1901 Group
Restructuring Cost and Reserve [Line Items]
Preliminary purchase consideration		$ 212,000,000
Cash acquired		2,000,000
Goodwill		123,000,000
Revenue					37,000,000		50,000,000
Goodwill tax deductible amount		$ 103,000,000
SD&A Businesses and Dynetics
Restructuring Cost and Reserve [Line Items]
Acquisition costs					4,000,000	12,000,000	4,000,000	23,000,000
SD&A Businesses
Restructuring Cost and Reserve [Line Items]
Preliminary purchase consideration			$ 1,019,000,000
Goodwill			574,000,000
Revenue					74,000,000	$ 80,000,000	146,000,000	80,000,000
Goodwill tax deductible amount					$ 432,000,000		432,000,000
Cash			27,000,000
Payments to acquire businesses			1,015,000,000
Payment for contractual net working capital acquired			$ 31,000,000
Dynetics
Restructuring Cost and Reserve [Line Items]
Goodwill				$ 789,000,000
Revenues							$ 567,000,000	$ 335,000,000
Payments to acquire businesses, net of cash acquired				$ 1,640,000,000

Acquisitions, Goodwill, and I_4

Acquisitions, Goodwill, and Intangible Assets (Schedule of intangible assets acquired) (Details) - USD ($) $ in Millions	May 07, 2021	Jan. 14, 2021	May 04, 2020	Jan. 31, 2020
Gibbs & Cox
Acquired Indefinite-lived Intangible Assets [Line Items]
Weighted average amortization period	10 years
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles	$ 125
Gibbs & Cox | Programs
Acquired Indefinite-lived Intangible Assets [Line Items]
Weighted average amortization period	10 years
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles	$ 101
Gibbs & Cox | Trade names
Acquired Indefinite-lived Intangible Assets [Line Items]
Weighted average amortization period	5 years
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles	$ 4
Gibbs & Cox | Backlog
Acquired Indefinite-lived Intangible Assets [Line Items]
Weighted average amortization period	10 years
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles	$ 20
1901 Group
Acquired Indefinite-lived Intangible Assets [Line Items]
Weighted average amortization period		8 years
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles		$ 85
1901 Group | Programs
Acquired Indefinite-lived Intangible Assets [Line Items]
Weighted average amortization period		10 years
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles		$ 37
1901 Group | Technology
Acquired Indefinite-lived Intangible Assets [Line Items]
Weighted average amortization period		8 years
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles		$ 43
1901 Group | Backlog
Acquired Indefinite-lived Intangible Assets [Line Items]
Weighted average amortization period		1 year
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles		$ 5
SD&A Businesses
Acquired Indefinite-lived Intangible Assets [Line Items]
Weighted average amortization period			11 years
Fair value			$ 355
SD&A Businesses | In-process research and development ("IPR&D")
Acquired Indefinite-lived Intangible Assets [Line Items]
Indefinite-lived intangible assets			$ 92
SD&A Businesses | Programs
Acquired Indefinite-lived Intangible Assets [Line Items]
Weighted average amortization period			13 years
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles			$ 141
SD&A Businesses | Technology
Acquired Indefinite-lived Intangible Assets [Line Items]
Weighted average amortization period			10 years
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles			$ 73
SD&A Businesses | Customer relationships
Acquired Indefinite-lived Intangible Assets [Line Items]
Weighted average amortization period			10 years
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles			$ 49
Dynetics
Acquired Indefinite-lived Intangible Assets [Line Items]
Weighted average amortization period				12 years
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles				$ 528
Dynetics | Programs
Acquired Indefinite-lived Intangible Assets [Line Items]
Weighted average amortization period				13 years
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles				$ 485
Dynetics | Technology
Acquired Indefinite-lived Intangible Assets [Line Items]
Weighted average amortization period				11 years
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles				$ 11
Dynetics | Backlog
Acquired Indefinite-lived Intangible Assets [Line Items]
Weighted average amortization period				1 year
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles				$ 32

Acquisitions, Goodwill, and I_5

Acquisitions, Goodwill, and Intangible Assets (Schedule of preliminary fair values of the assets acquired and liabilities assumed) (Details) - USD ($) $ in Millions	Jul. 02, 2021	Jan. 01, 2021	May 04, 2020	Jan. 03, 2020
Business Acquisition [Line Items]
Goodwill	$ 6,707	$ 6,313		$ 4,912
SD&A Businesses
Business Acquisition [Line Items]
Cash			$ 27
Receivables			128
Inventory			106
Other current assets			26
Operating lease right-of-use assets			35
Property, plant and equipment			32
Intangible assets			355
Accounts payable and accrued liabilities			(132)
Accrued payroll and employee benefits			(8)
Operating lease liabilities			(32)
Deferred tax liabilities			(52)
Other long-term liabilities			(13)
Total identifiable net assets acquired			472
Goodwill			574
Purchase price			$ 1,046

Acquisitions, Goodwill, and I_6

Acquisitions, Goodwill, and Intangible Assets (Acquisition expenses incurred) (Details) - SD&A Businesses and Dynetics - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jul. 02, 2021	Jul. 03, 2020	Jul. 02, 2021	Jul. 03, 2020
Business Acquisition [Line Items]
Acquisition costs	$ 4	$ 12	$ 4	$ 23
Integration costs	4	3	9	3
Total acquisition and integration costs	$ 8	$ 15	$ 13	$ 26

Acquisitions, Goodwill, and I_7

Acquisitions, Goodwill, and Intangible Assets (Schedule of Changes in Goodwill by Segment) (Details) - USD ($) $ in Millions	6 Months Ended	12 Months Ended
	Jul. 02, 2021	Jan. 01, 2021
Goodwill [Roll Forward]
Goodwill, Beginning Balance	$ 6,313	$ 4,912
Goodwill re-allocation		0
Goodwill acquired during period	373	1,357
Foreign currency translation adjustments	21	44
Ending balance, Goodwill	6,707	6,313
Defense Solutions
Goodwill [Roll Forward]
Goodwill, Beginning Balance	3,300	2,039
Goodwill re-allocation		429
Goodwill acquired during period	368	788
Foreign currency translation adjustments	(13)	44
Ending balance, Goodwill	3,655	3,300
Civil
Goodwill [Roll Forward]
Goodwill, Beginning Balance	2,047	1,907
Goodwill re-allocation		(429)
Goodwill acquired during period	5	569
Foreign currency translation adjustments	34	0
Ending balance, Goodwill	2,086	2,047
Health
Goodwill [Roll Forward]
Goodwill, Beginning Balance	966	966
Goodwill re-allocation		0
Goodwill acquired during period	0	0
Foreign currency translation adjustments	0	0
Ending balance, Goodwill	$ 966	$ 966

Acquisitions, Goodwill, and I_8

Acquisitions, Goodwill, and Intangible Assets (Schedule of intangible assets) (Details) - USD ($) $ in Millions	Jul. 02, 2021	Jan. 01, 2021
Acquired Finite-Lived Intangible Assets [Line Items]
Finite-lived intangible assets, gross carrying value	$ 2,169	$ 1,946
Finite-lived intangible assets, accumulated amortization	(936)	(826)
Finite-lived intangible assets, net carrying value	1,233	1,120
Indefinite-lived intangible assets	96	96
Total intangible assets, gross carrying value	2,265	2,042
Total intangible assets, net carrying value	1,329	1,216
In-process research and development
Acquired Finite-Lived Intangible Assets [Line Items]
Indefinite-lived intangible assets	92	92
Trade names
Acquired Finite-Lived Intangible Assets [Line Items]
Indefinite-lived intangible assets	4	4
Programs
Acquired Finite-Lived Intangible Assets [Line Items]
Finite-lived intangible assets, gross carrying value	1,774	1,632
Finite-lived intangible assets, accumulated amortization	(775)	(687)
Finite-lived intangible assets, net carrying value	999	945
Technology
Acquired Finite-Lived Intangible Assets [Line Items]
Finite-lived intangible assets, gross carrying value	255	188
Finite-lived intangible assets, accumulated amortization	(112)	(100)
Finite-lived intangible assets, net carrying value	143	88
Customer relationships
Acquired Finite-Lived Intangible Assets [Line Items]
Finite-lived intangible assets, gross carrying value	98	93
Finite-lived intangible assets, accumulated amortization	(14)	(10)
Finite-lived intangible assets, net carrying value	84	83
Backlog
Acquired Finite-Lived Intangible Assets [Line Items]
Finite-lived intangible assets, gross carrying value	37	32
Finite-lived intangible assets, accumulated amortization	(34)	(29)
Finite-lived intangible assets, net carrying value	3	3
Trade names
Acquired Finite-Lived Intangible Assets [Line Items]
Finite-lived intangible assets, gross carrying value	5	1
Finite-lived intangible assets, accumulated amortization	(1)	0
Finite-lived intangible assets, net carrying value	$ 4	$ 1

Acquisitions, Goodwill, and I_9

Acquisitions, Goodwill, and Intangible Assets (Schedule of estimated annual amortization expense) (Details) - USD ($) $ in Millions	Jul. 02, 2021	Jan. 01, 2021
Estimated Annual Intangible Amortization Expense
2021 (remainder of year)	$ 113
2022	230
2023	204
2024	152
2025	125
2026 and thereafter	409
Finite-lived intangible assets, net carrying value	$ 1,233	$ 1,120

Fair Value Measurements (Financ

Fair Value Measurements (Financial Instruments Measured at Fair Value on Recurring Basis) (Details) - USD ($) $ in Millions	Jul. 02, 2021	Jan. 01, 2021
Carrying value
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative liability	$ 78	$ 103
Fair value
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative liability	$ 78	$ 103

Fair Value Measurements (Narrat

Fair Value Measurements (Narrative) (Details) - USD ($)	Jul. 02, 2021	Jan. 01, 2021
Carrying value
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of notes receivable	$ 15,000,000	$ 15,000,000
Fair value of debt instrument	5,100,000,000	4,700,000,000
Fair value
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of debt instrument	5,500,000,000	$ 5,200,000,000
Designated as Hedging Instrument | Interest rate swaps
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Hedged instrument, face amount	$ 1,100,000,000

Derivative Instruments (Interes

Derivative Instruments (Interest rate swaps) (Details) - USD ($) $ in Millions	Jul. 02, 2021	Jan. 01, 2021
Cash Flow Hedging | Interest rate swaps | Other long-term liabilities | Designated as Hedging Instrument
Derivative [Line Items]
Liability derivatives	$ 78	$ 103

Derivative Instruments (Narrati

Derivative Instruments (Narrative) (Details)	Jul. 02, 2021USD ($)
Derivative [Line Items]
Losses expected to be reclassified in the next 12 months	$ 21,000,000
Designated as Hedging Instrument | Interest rate swaps
Derivative [Line Items]
Hedged instrument, face amount	$ 1,100,000,000
Designated as Hedging Instrument | Interest Rate Swap, Maturity Date August 2025 | Unsecured Debt
Derivative [Line Items]
Stated interest rate (in percentage)	3.00%

Derivative Instruments (Effect

Derivative Instruments (Effect of Cash Flow Hedge) (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jul. 02, 2021	Jul. 03, 2020	Jul. 02, 2021	Jul. 03, 2020
Derivatives, Fair Value [Line Items]
Total interest expense, net presented in the condensed consolidated statements of income in which the effects of cash flow hedges are recorded	$ 46	$ 41	$ 91	$ 89
Amount recognized in other comprehensive income (loss)	(3)	(7)	9	(62)
Interest Expense
Derivatives, Fair Value [Line Items]
Amount reclassified from accumulated other comprehensive income (loss) to interest expense, net	$ 4	$ 4	$ 9	$ 4

Debt (Summary of debt) (Details

Debt (Summary of debt) (Details) - USD ($)	Jul. 02, 2021	Jan. 01, 2021
Debt Instrument [Line Items]
Total long-term debt	$ 4,740,000,000	$ 4,744,000,000
Long-term Debt and Lease Obligation, Current	(101,000,000)	(100,000,000)
Total long-term debt, net of current portion	4,639,000,000	4,644,000,000
Long-term debt	5,114,000,000	4,782,000,000
Unamortized debt discounts and deferred debt issuances costs	48,000,000	51,000,000
Notes payable and finance leases due on various dates through fiscal 2032
Debt Instrument [Line Items]
Notes payable and finance leases due on various dates through fiscal 2032	$ 54,000,000	13,000,000
Notes payable and finance leases due on various dates through fiscal 2032 | Minimum
Debt Instrument [Line Items]
Stated interest rate	1.56%
Notes payable and finance leases due on various dates through fiscal 2032 | Maximum
Debt Instrument [Line Items]
Stated interest rate	5.49%
Unsecured Debt | $380 million term loan, due May 2022
Debt Instrument [Line Items]
Debt instrument, face amount	$ 380,000,000
Unsecured Debt | $1,925 million term loan, due January 2025
Debt Instrument [Line Items]
Debt instrument, face amount	$ 1,925,000,000
Stated interest rate	1.49%
Effective interest rate	1.75%
Senior unsecured debt	$ 1,345,000,000	1,391,000,000
Unsecured Debt | $500 million notes, due May 2023
Debt Instrument [Line Items]
Debt instrument, face amount	$ 500,000,000
Stated interest rate	2.95%
Effective interest rate	3.17%
Senior unsecured debt	$ 0	497,000,000
Unsecured Debt | $500 million notes, due May 2025
Debt Instrument [Line Items]
Debt instrument, face amount	$ 500,000,000
Stated interest rate	3.63%
Effective interest rate	3.76%
Senior unsecured debt	$ 0	496,000,000
Unsecured Debt | $750 million notes due May 2030
Debt Instrument [Line Items]
Debt instrument, face amount	$ 750,000,000
Stated interest rate	4.38%
Effective interest rate	4.50%
Senior unsecured debt	$ 0	737,000,000
Unsecured Debt | $1,000 million notes, due February 2031
Debt Instrument [Line Items]
Debt instrument, face amount	$ 1,000,000,000
Stated interest rate	2.30%
Effective interest rate	2.38%
Senior unsecured debt	$ 0	989,000,000
Unsecured Debt | $250 million notes, due July 2032
Debt Instrument [Line Items]
Debt instrument, face amount	$ 250,000,000
Stated interest rate	7.13%
Effective interest rate	7.43%
Senior unsecured debt	$ 247,000,000	247,000,000
Unsecured Debt | $300 million notes, due July 2033
Debt Instrument [Line Items]
Debt instrument, face amount	$ 300,000,000
Stated interest rate	5.50%
Effective interest rate	5.88%
Senior unsecured debt	$ 158,000,000	158,000,000
Unsecured Debt | $300 million notes, due December 2040
Debt Instrument [Line Items]
Debt instrument, face amount	$ 300,000,000
Stated interest rate	5.95%
Effective interest rate	6.03%
Senior unsecured debt	$ 216,000,000	216,000,000
Secured Debt | $500 million notes, due May 2023
Debt Instrument [Line Items]
Debt instrument, face amount	$ 500,000,000
Stated interest rate	2.95%
Effective interest rate	3.17%
Senior unsecured debt	$ 498,000,000	0
Secured Debt | $500 million notes, due May 2025
Debt Instrument [Line Items]
Debt instrument, face amount	$ 500,000,000
Stated interest rate	3.63%
Effective interest rate	3.76%
Senior unsecured debt	$ 496,000,000	0
Secured Debt | $750 million notes due May 2030
Debt Instrument [Line Items]
Debt instrument, face amount	$ 750,000,000
Stated interest rate	4.38%
Effective interest rate	4.50%
Senior unsecured debt	$ 737,000,000	0
Secured Debt | $1,000 million notes, due February 2031
Debt Instrument [Line Items]
Debt instrument, face amount	$ 1,000,000,000
Stated interest rate	2.30%
Effective interest rate	2.38%
Senior unsecured debt	$ 989,000,000	0
Unsecured Debt | $380 million term loan, due May 2022
Debt Instrument [Line Items]
Stated interest rate	1.24%
Effective interest rate	1.34%
Senior unsecured debt	$ 380,000,000	$ 0

Debt (Narrative) (Details)

Debt (Narrative) (Details)	May 07, 2021USD ($)	Jul. 02, 2021USD ($)	Jul. 03, 2020USD ($)	Jul. 02, 2021USD ($)increase	Jul. 03, 2020USD ($)	Jan. 01, 2021USD ($)
Debt Instrument [Line Items]
Payments of long-term debt				$ 53,000,000	$ 4,203,000,000
Write off of debt discount and issuance costs			$ 12,000,000		31,000,000
Amortization of debt discount and debt issuance costs		$ 2,000,000	5,000,000	4,000,000	9,000,000
Unsecured Debt
Debt Instrument [Line Items]
Repayment of debt principal		24,000,000	24,000,000	48,000,000	24,000,000
Line of Credit | Revolving Credit Facility
Debt Instrument [Line Items]
Long-term line of credit		$ 0		$ 0		$ 0
The Credit Agreement
Debt Instrument [Line Items]
Covenant, adjusted consolidated total debt to consolidated EBITDA ratio		3.75		3.75
Number of potential leverage ratio increases | increase				2
Covenant, leverage ratio, maximum, potential increase following material acquisition		4.50		4.50
Covenant, consolidated EBITDA to interest expense ratio		3.50		3.50
The Credit Agreement | London Interbank Offered Rate (LIBOR)
Debt Instrument [Line Items]
Variable rate percentage				1.38%
The Credit Agreement | London Interbank Offered Rate (LIBOR) | Minimum
Debt Instrument [Line Items]
Variable rate percentage				1.13%
The Credit Agreement | London Interbank Offered Rate (LIBOR) | Maximum
Debt Instrument [Line Items]
Variable rate percentage				1.75%
The Credit Agreement | Unsecured Debt | Term Loan
Debt Instrument [Line Items]
Debt instrument, face amount		$ 1,900,000,000		$ 1,900,000,000
The Credit Agreement | Line of Credit | Revolving Credit Facility
Debt Instrument [Line Items]
Unsecured borrowing capacity		750,000,000		750,000,000
2021 Credit Agreement | Unsecured Debt
Debt Instrument [Line Items]
Debt instrument, face amount	$ 380,000,000
2021 Credit Agreement | Unsecured Debt | London Interbank Offered Rate (LIBOR)
Debt Instrument [Line Items]
Variable rate percentage	1.13%
2021 Credit Agreement | Unsecured Debt | Base Rate
Debt Instrument [Line Items]
Variable rate percentage	0.13%
Debt payments, excluding refinanced debt
Debt Instrument [Line Items]
Payments of long-term debt		$ 27,000,000	226,000,000	$ 53,000,000	228,000,000
Debt Payments, Refinanced Debt
Debt Instrument [Line Items]
Payments of long-term debt			$ 2,050,000,000		$ 3,975,000,000

Accumulated Other Comprehensi_3

Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions	6 Months Ended	12 Months Ended
	Jul. 02, 2021	Jan. 01, 2021
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Beginning Balance	$ 3,871	$ 3,417
Ending Balance	4,148	3,871
Accumulated other comprehensive loss
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Beginning Balance	(46)	(70)
Other comprehensive income (loss)	34	6
Taxes	(12)	4
Reclassification from accumulated other comprehensive loss	(9)	(14)
Ending Balance	(15)	(46)
Foreign currency translation adjustments
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Beginning Balance	30	(33)
Other comprehensive income (loss)	25	70
Taxes	(8)	(7)
Ending Balance	47	30
Unrecognized gain (loss) on derivative instruments
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Beginning Balance	(70)	(33)
Other comprehensive income (loss)	9	(61)
Taxes	(4)	10
Reclassification from accumulated other comprehensive loss	(9)	(14)
Ending Balance	(56)	(70)
Pension adjustments
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Beginning Balance	(6)	(4)
Other comprehensive income (loss)	0	(3)
Taxes	0	1
Ending Balance	$ (6)	$ (6)

Earnings Per Share (Reconciliat

Earnings Per Share (Reconciliation of weighted average number of shares outstanding) (Details) - shares shares in Millions	3 Months Ended		6 Months Ended
	Jul. 02, 2021	Jul. 03, 2020	Jul. 02, 2021	Jul. 03, 2020
Earnings Per Share [Abstract]
Basic weighted average number of shares outstanding (shares)	141	142	141	142
Dilutive common share equivalents-stock options and other stock awards (shares)	2	2	2	2
Diluted weighted average number of shares outstanding (shares)	143	144	143	144

Earnings Per Share (Narrative)

Earnings Per Share (Narrative) (Details) - USD ($) shares in Millions, $ in Millions	3 Months Ended		6 Months Ended
	Jul. 02, 2021	Jul. 03, 2020	Jul. 02, 2021	Jul. 03, 2020
Earnings Per Share [Abstract]
Anti-dilutive shares (in shares)	1	1	1	1
Payments for repurchase of common stock	$ 0		$ 100

Sale of Accounts Receivable (Na

Sale of Accounts Receivable (Narrative) (Details) - USD ($) $ in Millions	6 Months Ended
	Jul. 02, 2021	Jul. 03, 2020
Receivables [Abstract]
Receivable collectible period	30 days
Sales of accounts receivable	$ 693	$ 1,113
Proceeds from sale of receivables	$ 693	$ 1,112

Sale of Accounts Receivable (Ac

Sale of Accounts Receivable (Accounts Receivable Sale Activity) (Details) - USD ($) $ in Millions	6 Months Ended
	Jul. 02, 2021	Jul. 03, 2020
Receivables [Abstract]
Sales of accounts receivable	$ 693	$ 1,113
Cash collections on sold receivables remitted to financial institution	(693)	(888)
Outstanding balance sold to financial institution	0	225
Cash collected but not yet remitted to financial institution	0	(14)
Sold receivables due from customers	$ 0	$ 211

Business Segments (Schedule of

Business Segments (Schedule of segment reporting information by segment) (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jul. 02, 2021	Jul. 03, 2020	Jul. 02, 2021	Jul. 03, 2020
Segment Reporting Information [Line Items]
Revenues	$ 3,448	$ 2,914	$ 6,763	$ 5,803
Operating income (loss)	269	249	577	441
Operating Segments | Defense Solutions
Segment Reporting Information [Line Items]
Revenues	2,004	1,757	3,962	3,462
Operating income (loss)	137	119	289	214
Operating Segments | Civil
Segment Reporting Information [Line Items]
Revenues	799	758	1,565	1,412
Operating income (loss)	55	78	129	137
Operating Segments | Health
Segment Reporting Information [Line Items]
Revenues	645	399	1,236	929
Operating income (loss)	107	1	209	74
Corporate
Segment Reporting Information [Line Items]
Operating income (loss)	$ (30)	$ 51	$ (50)	$ 16

Commitments and Contingencies (

Commitments and Contingencies (Narrative) (Details)	Apr. 05, 2021USD ($)	Oct. 30, 2020USD ($)	Nov. 22, 2019patentspatent	Aug. 30, 2018USD ($)	Apr. 10, 2018USD ($)	Jan. 31, 2021USD ($)	Jul. 02, 2021USD ($)	Dec. 10, 2019USD ($)	Nov. 10, 2015USD ($)
Standby Letters of Credit
Legal Proceedings [Line Items]
Amount outstanding							$ 75,000,000
Performance Guarantee
Legal Proceedings [Line Items]
Surety bonds notional amount							131,000,000
Leidos
Legal Proceedings [Line Items]
Litigation settlement, percentage of total (percentage)						25.00%
Virnet X Inc
Legal Proceedings [Line Items]
Amount awarded from other party		$ 503,000,000		$ 595,000,000	$ 502,000,000
Royalty rate awarded (per device)		$ 0.84		1.20
Awarded to the other party, interest and legal fees				$ 93,000,000
Number of infringed patents | patent			2
Number of infringed other patents | patents			2
Additional costs and interest						$ 75,000,000
MSA Venture
Legal Proceedings [Line Items]
Estimate of possible loss							64,000,000	$ 29,000,000	$ 64,000,000
Estimate of possible loss, amount deferred							$ 32,000,000
Payments for legal settlements	$ 37,000,000
MSA Venture | Lockheed Martin
Legal Proceedings [Line Items]
Percentage of damages covered, between $38 million and $64 million (percentage)							100.00%
Percentage of damages covered, excess of $64 million settlement amount (percentage)							50.00%
Payments for legal settlements	$ 3,000,000
MSA Venture | Leidos
Legal Proceedings [Line Items]
Estimate of possible loss							$ 38,000,000

Commitments and Contingencies_2

Commitments and Contingencies (Future Expirations Maturity Table) (Details) - Standby Letters of Credit and Surety Bonds $ in Millions	Jul. 02, 2021USD ($)
Guaranteed Obligation, Type [Line Items]
2021 (remainder of year)	$ 79
2022	103
2023	4
2024	2
2025	2
2026 and thereafter	16
Guaranteed obligation	$ 206

Subsequent Events (Details)

Subsequent Events (Details) - Subsequent Event - Commercial Paper	Jul. 12, 2021USD ($)
Subsequent Event [Line Items]
Commercial paper	$ 750,000,000
Debt instrument term	397 days